Page 214 - Group Insurance and Retirement Benefit IC 83 E- Book

Accounting for Retirement Benefits 195
Accounting Standard (AS) 15

Employee Benefits

(This Accounting Standard includes paragraphs set in bold italic
type and plain type, which have equal authority. Paragraphs in bold
italic type indicate the main principles. This Accounting Standard
should be read in the context of its objective and the General
Instructions contained in part A of the Annexure to the Notification.)

Objective

The objective of this Standard is to prescribe the accounting and disclosure
for employee benefits. The Standard requires an enterprise to recognise:
(a) a liability when an employee has provided service in exchange for
employee benefits to be paid in the future; and

(b) an expense when the enterprise consumes the economic benefit
arising from service provided by an employee in exchange for
employee benefits.
Scope

1. This Standard should beapplied byan employer in accounting for all
employee benefits, except employee share-based payments .
1
2. This Standard does not deal with accounting and reporting by
employee benefit plans.

3. The employee benefits to which this Standard applies include those
provided:

The accounting for such benefits is dealt with in the Guidance Note on Accounting
1
for Employee Share-based Payments issued by the Institute of Chartered Account-
ants of India.