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AS-15-Valuation Of Employee Benefits

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The file attached contains the topic about the Valuing of Employee benefits like salary, Gratuity, & Retirement Benefits. These notes helpful for all the students who pursuing the CA,ICWA. This easy notes assists the students for computing the various payments made to Employees

  • 1
    AS-15 EMPLOYEE BENEFITS VALUATION AS-15 VALUATION STB LTB Short Term Benefits Benefits payable within 12 mths of rendering services. Ex:-Bonus,SalaryO/s last mth,Allowances etc. Measurement:-Undiscounted basis. Accounted:-Charged to P&L a/c. It is capitalised if incurred- for installation of asset/prodn of asset. If short paid:-O/s If Excess paid:-Prepaid. Special Discussion on- Bon It is a prvsion as per AS-29. Rendering of service is a past Bonus Contractual Statute If Bonus to be given is discret Qn no:-5 Page no:-134
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    Paid Leave Utilised Paid through Pay-roll. 300 days 60.000,oo Entries to be passed:- Paid leaves utilised Employee Cost a.c Dr To Cash/Bank a.c L a/c Dr To Emp.Cost a.c Paid leaves Unutilised Employee Cost a.c Dr To Provn for Emp.Benefits L a/c Dr To Emp.Cost a.c Vesting Provision 40.000,oo 60.000,oo Accumulated 400/0 200 % of Utilisation Provision 36.000,oo 60.000,oo 60.000,oo 60.000,oo 76.000,oo 76.000,oo 76.000,oo 76.000,oo
  • 5
    lus event. Past practise 1 ionary-lgnore. Contractual Obligation Compulsory to be provided Paid Leave Utilised Paid through Pay-roll. Accumulate Vesting Provision % of Utilisa Provide
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    Unutilised 500 days Non-Vesting Non-Accumulated (Employer) 200 days (No provision have to be created) Lapse 60% (Employee) 300 % of Non-Utilisation Lapse 400/0 Lapse (Employee)
  • 9
    Terminating Benefits AS-26 Exc.as IA. AS-4-Empl. Joining after 31/3 AS-29-Prvsn for addtl employees joining VRS. AS-5 Exceptional Item Not provided can become PPI. AS-15 Exp. Charged to P&L a/c. Defined Cn Ann.Premi1 of employe No actuarie DCP charge Unutilis Non-Vesting Not to defer. Non-Accumulated (Employee) (Employer) tion % of Non-Utilisation Lapse (Employee)
  • 13
    Retirement Benefits Ben.payable eithe Retirement.
  • 14
    Note:- Opg Value i Yr-I CSC a/c To PV of Obi PA a/c To Bank Q.no:-40 Page no: 2012-2013 By CSC To bal c/d 2013-2014 By bal b/d BY CSC By Inter on Opg To bal c/d
  • 15
    Pbm no.41 Page no:-389 Pblm no:-ll Page no:-139 Israr Curtailment Cases/PSC 2015-2016 Opg Obl opg r-v csc 2014-2015 By bal b/d BY CSC By Inter on Opg By Loss (P&L a/c) To bal c/d (Please don't add Credit side figures (Since w ulatl 2015-2016 By bal b/d BY CSC By Inter on Opg To bal c/d 1.4.2009 30.09.2009 Less:- 1800 Y 1000 Return 200
  • 16
    Retired PSC VB NVB (3yrs) Cig Bal PV(0bl) r-v of PA 300 100 30 2000 1800 Nov 2013 Pbm I(a) Pag no:-3 Curtailment & Settlement Disclosure In B/s(Extract) B4 Curtailment On Curtailment 01.04.2014 30.09.2014 Less:- Less:- Add:- Less:- Particulars PV of Obi FV of PA Unam.NVB (PSC)-GIVEN Entry to be passed PV of obl To UnamortiNVB 4.000,oo (3.250,00) 750,00 (100,00) 650,00 Gain on Curtailment (500,00) 12,50 500,00 To Gain on Curtailment(b/f) Nov 2015 Pbm I(d) As on 1st Apr 2014 Opg value of FV of PA Inward Cn Ben.Paid Exp.Return Computed Cig FV of PA Actual gain Actual loss given Net Gain 100.000,oo 49.000,oo (19.000,00) 11.787,50 141.787,50 (150.000,00) 8.212,50 (600,00) 7.612,50 Credited to a
  • 17
    r on the dates or after the date of- PV of Obligation Caln final obli. On the date of retireme Compute ann.attributable amt for each service (step l/n) Compute "Current Service Cost" from Charge CSC to P&L a/c and Creates PV Subs.Yr Calculate CSC and even Interes Repeat the process every year.But due Qn.9.Page no 135 Isq Ans:- Note:-Salary growth not applicable to- First year that's why power is for 4 yrs- instead of 5 yrs. Rounded off to - nearest 1001s 1% of F.S for each yea: c.s
  • 18
    Obligation Table Particulars Opg Add:-CSC Int.Cost Clg is not there, no interest cost figure also. PV of Obi. 89 (Pv. Of Annuity) -389 P.V of Obln Dr 1 5 89 0 89 0,683013455 CSC*n 89 Cr 2 4 89 98 8 0,751314801 xxx xxx 3 3 195,9 108 19,59 323,49 0,826446281 108.800,oo 108.800,oo 235.000,oo 235.000,oo 108.800,oo 108.800,oo 108.800,oo 117.500,oo 8.700,00 235.000,oo xxx xxx 2012-2013 To Bank By bal c/d 2013-2014 To bal b/d To Cash To Int.income By Loss(P&L a/c) By bal c/d
  • 19
    235.000,oo 158.600,oo 16.920,oo 65.280,oo 475.800,oo (31.3.2015) the fo (Act.gain/Loss) 475.800,oo 475.800,oo ing closing balance of 14-15) 2014-2015 To bal b/d To Cash To Int.income To a/c) By bal c/d e CSC for 2014-2015 after considering the prior 2 years details, the Clg balance is calculated as per below r pective loss of 2 years has been adjusted in 14-15 P&L a/c 627.558,oo 627.558,oo 2015-2016 To bal b/d To Cash To Int.income By Loss (P&L a/c) By bal c/d 3.000,oo 1179 F.V of Plan Assets Balance Cash Withdrawn Income Accrued Act.Valn Act.gain Act. Losses Net gain PV of Obi Particulars By bal b.d By CSC 7% By Int.Cost @70/0 To Retirme By PSC 475.800,oo 117.500,oo 34.258,oo 627.558,oo 10.000,oo 4.900,oo (1.900,00) 1.179,oo 14.179,oo 15.000,oo 821,00 (60,00) 761,00 (Credited to a/c) Dr Cr 300 r-v of PA Particulars 1800 To bal b.d 200 To 126 By retired To Cash invested To Act.gain(b.f)
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    2000 2.300,oo After Curtailment 3.500,oo (3.250,00) 250,00 (87,50) 162,50 12,50 487,50 10,250/0 Net Cn Income Accrued l/c VB NVB By Act.Loss(b/f) To bal c.d (No change on Curtailment) csc Yr (Curtailment without settlement) Opg csc Int Clg 30.000,oo 11.787,50 Exp.Return from PA Act.Retun from PA 100 By bal c.d 30 44,00 2300 12,500/0 Qn. 4 0 Page no:-10 Nov-2014 RTP Gratuity LDS/FS Gratuity Yr 5 0,735 441.000,oo 1 441.000,oo 0 441.000,oo Of LDS/FS Ann.Emoluments*(1+F 2.400.ooo,oo 600.000,oo 4 0,7938 476.280,oo 2 441.000,oo 476.280,oo 35.280,oo 952.560,oo 11.787,50 20.000,oo
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    Defined Ben.Plan Employer makes a post employment assessment of Ret.Benefits. (Liability Side) nt. period of PV of Step2 of Obligation. t Cost on Opn Obligation To implement this he undertakes 2 things Cr to PV(obliga1 to change in actuarial assumptions a retrospective calculation is done known as Actuarial Gain/Loss. 1 2 131 131 of service 3 131 131 4 5 131 (annual attributable amt for each year) 10000 Missing & to be computed here as follows:- 13107,9601 13100 Gratuity for each year 131
  • 22
    4 2 323,49 119 32,35 474,84 0,909090909 Yr-2 CSC a/c To PV of Obi Int. a/c To PV of Obi PA a/c To Bank PA a/c To Int.lncome F.V of Plan Assets (act.valn) 7 5 1 474,84 131 (Put Ann.figure as it is) 47,48 653,32 (Rounded off difference) 1 Dr 100.000,oo 110.000,oo 10.000,oo 220.000,oo Cr 100.000,oo Working notes Gratuity p.a 100.000,OO FS csc (2012-2013) csc 18.625,oo 1.088,oo 108.800,oo 1.175,oo I.ooo,oo 219.000,oo 220.000,oo (2013-2014) 117.500,oo Dis.rate/lnt.Rate Dis.rate/lnt.Rate (Revised Ass)
  • 23
    (act.Valn) nanner only) (act.valn) Exp.Return Act. Retun Dr 300 PSC 219.000,oo 213.900,oo 21.900,oo 5.200,oo 460.000,oo 460.000,oo 173.000,oo 46.000,oo 679.000,oo 1.179,oo 2.000,oo 460.000,oo 460.000,oo 4.000,oo 675.000,oo 679.000,oo (Computed) (given) (given) Cr 1000 100 200 300 P&L a.c Disclosure csc Int.cost Ret.on PA VB NVB 2015-2016 200 126 Less:- -100 Less:- 100 10
  • 24
    1300 (30/3) 1600 Act.gain (300-44) Emp.Cost R)An (p.a) 1600 Gr.rate% Gra.% Dis.RateO/0 Final Year 3 0,8573 514.380,oo 3 952.560,oo 514.380,oo 76.205,oo 1.543.145,00 (Cheq.to be recievd) 2 0,9259 555.540,oo 4 1.543.145,oo 555.540,oo 123.452,oo 2.222.137,oo 8% 3.000.ooo,oo 1 1 600.000,oo 5 2.222.137,oo 600.000,oo 177.771,oo 2.999.908,oo (256,00) 80 Cheq. Amount to be received by "En
  • 25
    Fair value of Plan Assets(Assets) To fund the retirement plan we construct an asset. FV We invest money in various securities.(PA) The income is also re-invested in PA F.V of Plan Assets taken place which gives rise to ActiĆ¼ On retirement date we sell the plan assed 655
  • 26
    of F.S (26-1) (one Employee) (100 Employee) (one Employee) (100 Employee) 8% 7,200/0 Gratuity Yr 7.450,oo (Final cheque amount to be issued to Employee) Pbm no:-40 Pblm no:-41 Yr 25 0,146 Yr 5.500,oo 24 Yr 23 LDS 0,1577 0,2021 22 0,2166 ROI=80/0 Working notes Gratuity p.a Gratuity p.a (without applying any PV) ROI=7.20/0 Changed from 14-15 onwards 7,200/0 Gr.Rate Year 14-15 15-16 of F.S 19.625,oo 5,220/0 Cn to Asset 213.900,oo 173.000,oo F.V of Asset 460.000,oo 675.000,oo 7.850,00 (Remains the same eventhough rate we (
  • 27
    csc (2014-2015) csc (2015-2016) Disclosure In B/s 1.586,00 (one Employee) 158.600,OO (100 Empioyee) 1.700,OO (one Empioyee) 170.OOO,OO (100 Empioyee) PV of Obl FV of PA Unam.NVB (30/3) 2000 -1300 700 -20 680
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    gain/loss (Invstment) ts & repay the obligations.


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