IAS 19 Employee Benefits
IAS 19 addresses employee benefits other than share-based payments within IFRS 2. A defined contribution plan normally requires recognition of the contribution for employee service. A defined benefit plan requires measurement of the obligation and plan assets, including the asset ceiling where relevant; service cost, net interest and remeasurements have different presentation requirements. Short-term, other long-term and termination benefits follow their applicable IAS 19 recognition and measurement requirements.
Worked example
An employer owes a $20,000 contribution for employee service under a defined contribution plan. It recognises an expense and any unpaid amount as a liability, unless another standard requires inclusion in an asset.
Common mistake
Using defined contribution accounting for every pension arrangement or treating wages as outside employee benefits.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | SBR | Direct | September 2026–June 2027 |