Employee Benefits Notes

First Part Employee Benefits
Short-Term Employee Benefits

PAS 19- Employee Benefits.
Learning Objectives:
• Undustand the recognition and measurement of short-term employee benefits.
•Explain the accounting requirement of short term paid absences.
Employee Benefits.
• All form (in any form) of consideration given by an entity in exchange for service
rendered by employees or for the termination of employment.
Lahat ng consideration na binibigay kay employee ay employee benefit. Pwedeng
Cash, non-cash considerations.
-Ang kapalit ng Employee benefit ay pagrender ng service ng mga employees. Benefit

at end of contract kasama.
•Recognize as expense when the employees have rendered service except to the
extent. that the employee benefits form part of the cost of another asset.
-Employee Benefits na hindi ine-expense like:

Sahod ng mga manufacture - cost ng labor for product - inventory
Sahod sa pagpapagawa ng P.P.E.
-except kapag may connection sa inventory or sa P.P.E.
4 Categories under Pas 19 of Employee Benefits.
✓• Short-term employee benefits.

•Post-employment benefits
• Other long-term employee benefits
•Termination benefits.
Short-Term Employee Benefits

Benefits that are due to be settled within 12 month after the end of the period in which
the employed have rendered the related services.
Examples of short-term employee Benefits

• Salaries, wages and SSS, PhilHealth and PAGIBIG Contributions.
• Paid vacation leaves and Sick leaves / short-Term paid absinces.
•Profit sharing and Bonuses
•Non-monetary Benefits
Short-Term Paid absences

normally eto yung mga vacation leave, maternaty. Paternety, sick leave or mga holliday
payed.
Nirerecord as expense sa period kung kailan sila nagrender ng services Hindi kung
kailan nagclaim yung sick leave or vacation leave.
ex. Nagtrabaho nung 2021- earned to days vacation leave.

2021
10 days
↑Dito dapat nirecognize yung expense
2022
used the 10 Days
↑Binayaran ng Company
Examples of short form employee benefits.

•Accumulating those that can be carried forward and used in future periods if is not used
in the current period.
> Vesting - unused entitlement are paid in cash when employee leaves the entity.
> Non-vesting- unused entitlement are not monetizes.
• Non- accumulating - those that expire if not used in the current period and are not in
cash when the employee leaves the entity.
FOR ACCUMULATING LEAVE

An employer recognizes an expense during the period when employees are entitled to
accumulating Leave.
 Accumulating paid leave of vesting nature.
The company has the obligation to pay the employees the dollar amount of unpaid
leave on resignation, whether the leave is taken or not. the
 Accumulating paid leave of non-vesting nature.

We have to measure the expected cost to the company arising from the unused leave at
the end of the reporting period. The expected cost requires an estimate. amount of
leave days that will be used by the employees in the future period of the
record liab. alisin yung pliab.
FOR NON-ACCUMULATING LEAVE

An employer recognizes an expense during the period when non-accumulating leave is
taken.
Illustrative Example -Pag silent Current salary

Turon Inc began operations on January | 2021. The company employs 10 individuals
and
pays each P 480 per week Emplopyces earned 120 unused Vacations weeks in 2021.
In 2022, the employers used the vacation weeks, but now they each carn # 540 per
week. Turon decerves the accumulated vacation pay on December 31, 2021 as follows.
480 x20 = 9600
2021
Salaries and Wages Expense 9600
Salaries and Wages Payable 9600
In 2022, it records the payment of vacation pay as follows (20×540) = 10800

Salaries and wages Expense 9600
Salaries and wages Payable 1200
Cash 10800
Pag HINDI sinabi yung basis ng payment, at nagkaroon ng CHANGE IN RATE, the
CURRENT RATE and gagamitin.
Pag sinabing last -period and basis ng payment

Salaries and wages Payable 9600
Cash 9600
ILLUSTRATIVE EXAMPLE
A company give each of it's 50 employers (assume they were all employed
countinuously through 2021 and 2022) 12 days of vacation a year if they are employed
at the end of the year. The vacation accumulates and maybe taken starting January I of
the next year. The employees work 8 hours per day. In 2021 they made P21 per hour
and in 2022 they made 24 per hour. During 2022, they took an average of 9 days of
vacation each. The company's policy is to record the liability existing at the end of each
year at the wage rate for that year.
21 x 8 x 12 = (2016 X 50) = 100 800

2021
Salaries and rages expense 100800
Salaries and wages payable 100800
2022
Jan1
Salaries and wages expense 10800
Salaries and wages payable 75600
cash 86400
Dec.31
Salaries and wages expense 118800
Salaries and wage payable 118800
*The Company's policy is to record the liability existing at the cad of each year at the
wage rate for that year
2021 2022
Earned 12 12(remain)
12
Avail 0 9
Remain 12 15
Remain
15 - 3
- 12
To get 118800
3 x 8 x 3 = (72 X 50) = 3600
+
24 x 8 x 12 = (2304X 50) = 115200
Liability at 2021
100800
Liability at 2022
144000
Expense at 2021
129600
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First Part Employee Benefits

Short-Term Employee Benefits

-Ang kapalit ng Employee benefit ay pagrender ng service ng mga employees. Benefit

-Employee Benefits na hindi ine-expense like:

4 Categories under Pas 19 of Employee Benefits.

✓• Short-term employee benefits.

Short-Term Employee Benefits

Examples of short-term employee Benefits

Short-Term Paid absences

ex. Nagtrabaho nung 2021- earned to days vacation leave.

Examples of short form employee benefits.

FOR ACCUMULATING LEAVE

 Accumulating paid leave of non-vesting nature.

FOR NON-ACCUMULATING LEAVE

Illustrative Example -Pag silent Current salary

In 2022, it records the payment of vacation pay as follows (20×540) = 10800

Pag sinabing last -period and basis ng payment

21 x 8 x 12 = (2016 X 50) = 100 800

If may tanong chat lang...

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