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EMPLOYEE BENEFITS
Introduction – IAS 19
• In terms of IAS 19 employee benefits are recognised as an
expense when the enterprise consumes the economic
benefits arising from service provided by an employee in
exchange for employee benefits (in cash or otherwise).
• A liability arises when an employee has provided service in
exchange for employee benefits to be paid in the future (ie.
post-employment benefits).
• In terms of IAS 19 employee benefits are divided into four
major categories, viz: short-term employee benefits, post-
employment benefits, other long-term employee benefits
and termination benefits.
• This standard prescribes the correct accounting treatment
and disclosure of the relevant categories of employee
benefits.
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