PRESENTATION ON ACCOUNTING STANDARD -15 [ Employee Benefits , Revised 2005]

Introduction of Accounting Standard , Meaning and Benefits of AS – 15 , Features of AS- 15 ,Objectives AS- 15 , Scope AS – 15

1. “ A Study on ACCOUNTING STANDARD - 15 ”
A
PRESENTATION ON
ACCOUNTING STANDARD -15 [ Employee Benefits , Revised 2005]
SUBJECT: ACCOUNTING STANDARD AND FINANCIAL REPORTING
Submitted By ; Mr. GHANI NAIK
Mcom – 1sem
AICM,
Submitted To ; Sri .DINESH M S Mcom B Ed.
ASSISTANT PROFESSOR
AICM,
2019 – 2020

2. “ A Study on ACCOUNTING STANDARD - 15 ”
Contents

S.no Particulars Page No
1. Introduction of Accounting Standard 3 - 3
2. Meaning and Benefits of AS – 15 4 - 5
3. Features of AS- 15 6 -6
4. Objectives AS- 15 7 - 7
5. Scope AS – 15 8 - 9

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Meaning of AS-15
Accounting Standard (AS) 15, “Accounting for Retirement benefits in the financial
statements of Employers” requires provision for Gratuity on accrual basis. This means that
there has to be a provision for gratuity every year in the financial statements of employers.

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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.

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Scope
1. This Standard should be applied by an employer in accounting for all
employee benefits, except employee share-based payments1 .
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:
4. Employee benefits include:
(a) short-term employee benefits, such as wages, salaries and social security
contributions (e.g., contribution to an insurance company by an employer to
pay for medical care of its employees), paid annual leave, profit-sharing and
bonuses (if payable within twelve months of the end of the period) and
nonmonetary benefits (such as medical care, housing, cars and free or
subsidised goods or services) for current employees;
(b) post-employment benefits such as gratuity, pension, other retirement
benefits, post-employment life insurance and postemployment medical care;
(c) other long-term employee benefits, including long-service leave or
sabbatical leave, jubilee or other long-service benefits, longterm disability

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(d) termination benefits. Because each category identified in (a) to (d) above
has different characteristics, this Standard establishes separate requirements
for each category.
5. Employee benefits include benefits provided to either employees or their
spouses, children or other dependants and may be settled by payments (or the
provision of goods or services) made either:
(a) directly to the employees, to their spouses, children or other dependants,
or to their legal heirs or nominees; or
(b) to others, such as trusts, insurance companies.
6. An employee may provide services to an enterprise on a full-time, part-
time, permanent, casual or temporary basis. For the purpose of this Standard,
employees include whole-time directors and other management personnel.

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