Employee benefits accounting standards revised

Mumbai: The 'accounting standards board' of the Institute of Chartered Accountants of India (ICAI) has revised its accounting standard, AS 15 (employee benefits).

The existing accounting standard (AS 15), which was accepted in 1995, deals only with retirement benefits while the proposed revised standard would be applicable to accounting for all employee benefits except employee's share-based payments.

The employee benefits include short-term employee benefits such as wages, salaries, post-employment benefits such as pensions, gratuity, other retirement benefits, post-employment life insurance and post-employment medical care; other long-term employee benefits, including long-service leave or sabbatical leave, and termination benefits (including VRS expenditure).