Page 319 - Group Insurance and Retirement Benefit IC 83 E- Book

Appendix A

Application Guidance

This appendix is an integral part of the Ind AS. It describes the application of paragraphs 92– 93
and has the same authority as the other parts of the Ind AS.

A1 The accounting requirements for contributions from employees or third parties are illustrated
in the diagram below.

Contributions from employees or third parties

Set out in the formal terms of the plan (or arise from a
constructive obligation that goes beyond those terms) Discretionary

Not linked to
Linked to service service (for
example, reduce a

deficit)

Dependent on Independent of
the number of the number of
years of service years of service

(1)

Reduce service
Reduce service Affect Reduce service
cost by being cost in the period remeasurements cost upon
attributed to in which the (paragraph 93) payment to
periods of service related service the plan
(paragraph 93(a)) is rendered (paragraph 92)

(paragraph 93(b))

(1) This dotted arrow means that an entity is permitted to choose either accounting.

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