With a lot of entities faced with making tough financial decisions with the advent of COVID-19, staff retrenchments have become a scary reality for many employers and employees alike.
As a result, entities are having to pay out retrenchment packages, which are classified as ‘termination benefits.’
IAS 19 helps to guide the accounting for these payments as well as normal salaries, wages, leave accruals and bonus payments.
This session will help to guide you in ensuring the correct capturing and treatment of employee benefits in the accounting records, and appropriate presentation in the annual financial statements.
IAS 19 will be broken down into the following aspects for discussion:
• Short-term employee benefits [salaries and wages]
• Leave pay and bonus accruals
• Post-employment benefits [retirement annuities]
• Termination benefits
• Practical examples to illustrate accounting entries for each category of employee benefits
