Page 263 - Group Insurance and Retirement Benefit IC 83 E- Book

212 AS 15

Recognition and Measurement

129. The amount recognised as a liability for other long-term employee
benefits should be the net total of the following amounts:

(a) the present value of the defined benefit obligation at the balance
sheet date (see paragraph 65);

(b) minus the fair value at the balance sheet date of plan assets (if
any) out of which the obligations are to be settled directly (see
paragraphs 100-102).

In measuring the liability, an enterprise should apply paragraphs 49-91,
excluding paragraphs 55 and 61. An enterprise should apply paragraph
103 in recognising and measuring any reimbursement right.

130. For other long-term employeebenefits, an enterprise should recognise
the net total of the following amounts as expense or (subject to paragraph
59) income, except to the extent that another Accounting Standard requires
or permits their inclusion in the cost of an asset:

(a) current service cost (see paragraphs 64-91);
(b) interest cost (see paragraph 82);

(c) the expected return on any plan assets (see paragraphs 107-109)
and on any reimbursement right recognised as an asset (see
paragraph 103);

(d) actuarial gains and losses, which should all be recognised
immediately;

(e) past service cost, which should all be recognised immediately;
and

(f) the effect of any curtailments or settlements (see paragraphs
110 and 111).

131. One form of other long-term employee benefit is long-term disability
benefit. If the level of benefit depends on the length of service, an
obligation arises when the service is rendered. Measurement of
that obligation reflects the probability that payment will be required