AS - 15 - Employee Benefits

New Accounting Rules for Employee Benefits: AS 15 Requires Recognizing Liabilities and Expenses for Various Benefit Plans

The Accounting Standard (AS) 15 on Employee Benefits prescribes the accounting and disclosure requirements for employee benefits. It mandates recognizing a liability when an employee provides service in exchange for future benefits and an expense when the economic benefit from the service is consumed. The standard applies to various employee benefits, including short-term, post-employment, long-term, and termination benefits, excluding share-based payments. It requires employers to account for these benefits under formal agreements, legislative requirements, or informal practices that create obligations. The standard distinguishes between defined contribution and defined benefit plans, with specific recognition, measurement, and disclosure requirements for each, including actuarial assumptions and the treatment of plan assets.