ACCA SBR INT Syllabus C. Reporting The Financial Performance Of A Range Of Entities - Defined Contribution Scheme - Notes 3 / 6
Short-term Employee Benefits
Benefits payable within a year after work is done, such as wages, paid vacation and sick leave, bonuses etc. should be recognised when work is done.
Profit-sharing and Bonus Payments
Recognise when there is an obligation to make such payments and a reliable estimate of the expected cost can be made.
Defined contribution plan
The enterprise pays fixed contributions into a fund and has no further obligations.
The contribution payable is recognised in the income statement for that period.
If contributions are not payable until after a year they must be discounted.