Page 266 - Group Insurance and Retirement Benefit IC 83 E- Book

Employee Benefits 215

Measurement

139. Where termination benefits fall due more than 12 months after the
balance sheet date, they should be discounted using the discount rate
specified in paragraph 78.

Provided that a Small and Medium-sized Company, as defined in
the Notification, may not discount amounts that fall due more than 12
months after the balance sheet date.

Disclosure

140. Where there is uncertainty about the number of employees who will
accept an offer of termination benefits, a contingent liability exists. As
required by AS 29, Provisions, Contingent Liabilities and Contingent
Assets an enterprise discloses information about the contingent liability
unless the possibility of an outflow in settlement is remote.

141. As required by AS 5, Net Profit or Loss for the Period, Prior Period
Items and Changes in Accounting Policies an enterprise discloses the
nature and amount of an expense if it is of such size, nature or incidence
that its disclosure is relevant to explain the performance of the enterprise
for the period. Termination benefits may result in an expense needing
disclosure in order to comply with this requirement.

142. Where required by AS 18, Related Party Disclosures an enterprise
discloses information about termination benefits for key management
personnel.

Transitional Provisions

Employee Benefits other than Defined Benefit Plans and
Termination Benefits

143. Where an enterprise first adopts this Standard for employee
benefits, the difference (as adjusted by any related tax expense) between
the liability in respect of employee benefits other than defined benefit
plans and termination benefits, as per this Standard, existing on the
date of adopting this Standard and the liability that would have
been recognised at the same date, as per the pre-revised AS 15 issued
by the ICAI in 1995, should be adjusted against opening balance of
revenue reserves and surplus.