frs119 employee benefit
FRS119 Employee Benefits AFRB353 Advanced Financial Accounting
Semester 1, Year 2013/2014 The objective of FRS 119 is to prescribe the accounting and disclosure for employee benefits. The standard requires an entity to recognize a liability when an employee has provided service and an expense when the entity consumes the economic benefit arising from the service. 1. State the four categories of employees benefits identified in FRS 119.
2. Define: a) A qualifying insurance policy b) Actuarial gains and losses c) Assets held by a long-term employee benefit fund d) Current service cost e) Defined benefit plans f) Defined contribution plans g) Multi-employer plans h) Plan assets
3. Explain how an entity shall recognize the expected cost of short-term compensated absences for its employees.
4. Under what circumstances an entity shall recognize its expected cost of profit-sharing and bonus payments.
5. What are the differences between defined contribution plans and defined benefit plans.
6. Explain what is meant by past service cost and the accounting treatment s of past service cost. (
7. How do you determine the amount of defined benefit liability in the balance sheet?
8. In measuring the defined benefit liability, how much of actuarial gains and losses should be recognized as income or expenses?
QUESTION 1 [20 marks] - AFRB353 Semester 3 2011/2012
Part A FRS119 Employee Benefits defines employee benefits as "All forms of consideration given by an entity in exchange for service rendered by employees". This standard addresses about various form of benefits offered by employer to its employees such as short-term employment benefits, post-employment benefits, other long term employee benefits and termination benefits. Short-term employment benefits can be further categorised as wages and
Semester 1, Year 2013/2014 The objective of FRS 119 is to prescribe the accounting and disclosure for employee benefits. The standard requires an entity to recognize a liability when an employee has provided service and an expense when the entity consumes the economic benefit arising from the service. 1. State the four categories of employees benefits identified in FRS 119.
2. Define: a) A qualifying insurance policy b) Actuarial gains and losses c) Assets held by a long-term employee benefit fund d) Current service cost e) Defined benefit plans f) Defined contribution plans g) Multi-employer plans h) Plan assets
3. Explain how an entity shall recognize the expected cost of short-term compensated absences for its employees.
4. Under what circumstances an entity shall recognize its expected cost of profit-sharing and bonus payments.
5. What are the differences between defined contribution plans and defined benefit plans.
6. Explain what is meant by past service cost and the accounting treatment s of past service cost. (
7. How do you determine the amount of defined benefit liability in the balance sheet?
8. In measuring the defined benefit liability, how much of actuarial gains and losses should be recognized as income or expenses?
QUESTION 1 [20 marks] - AFRB353 Semester 3 2011/2012
Part A FRS119 Employee Benefits defines employee benefits as "All forms of consideration given by an entity in exchange for service rendered by employees". This standard addresses about various form of benefits offered by employer to its employees such as short-term employment benefits, post-employment benefits, other long term employee benefits and termination benefits. Short-term employment benefits can be further categorised as wages and