Page 268 - Group Insurance and Retirement Benefit IC 83 E- Book

Employee Benefits 217

Transitional liability 2 3 6

Liability already recognised 100

Increase in liability 1 3 6

This increase in liability (as adjusted by any related deferred tax)
should be adjusted against the opening balance of revenue reserves
and surplus as on 1 April 20X6.

Termination Benefits

146. This Standard requires immediate expensing of expenditure on
termination benefits (including expenditure incurred on voluntary retirement
scheme (VRS)). However, where an enterprise incurs expenditure
on termination benefits on or before 31 st March, 2009, the enterprise
may choose to follow the accounting policy of deferring such
expenditure for amortisation over its pay-back period.
However, the expenditure so
deferred cannot be carried forward to accounting periods commencing on