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settlement as in IAS 19

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › settlement as in IAS 19

  • This topic has 1 reply, 2 voices, and was last updated 4 years ago by Stephen Widberg.
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  • May 15, 2021 at 1:50 pm #620661
    Noah098
    Member
    • Topics: 935
    • Replies: 352
    • ☆☆☆☆☆

    sir this is perhaps a very small and a simple doubt, but i just wanted some clearly on it.

    Wanted to ask what does the word SETTLEMENT exactly mean in the context of employee benefits?
    does it mean:
    1- paying it out through cash/another financial asset, OR
    2-coming to terms with employees about agreed payment

    May 16, 2021 at 9:58 am #620740
    Stephen Widberg
    Keymaster
    • Topics: 16
    • Replies: 3427
    • ☆☆☆☆☆

    It means both – there is a discussion with employees (well, they are told to take it or leave it) and then the pension fund pays them off (usually by transferring cash to another pension scheme which is unrelated to the company)

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