AS-15 Employee Benefits Applicability

[krishna besta]

Dear Sir,

Please Clarify the AS-15 Applicability. we have Newly started Division in F.Y 2011-12. But Total Entity is started long back. In new division having employees more than 100 employees and division have a Earned leave facility given to the employees.

In the above critieria is applicable AS-15. Is it required to make provision in the books of accounts in the F.Y 2011-12.

Regards,

Krishna.B

[CAGOPALJI AGRAWAL]

The applicability of AS-15 would be seen from the Entity point of view and not from the point of division only. It seems that you are a non SMC hence the provisions of AS-15 would apply fully in your case. So provisions for both short term and long term benefits have to provided.

AI Summary

Employee benefits applicability: AS-15 applies at entity level, requiring provisions for short term and long term benefits. AS-15 applies at the entity level rather than by division; a non SMC entity must apply AS-15 in full. The entity must recognise and provide in its financial statements for both short term and long term employee benefit obligations arising in the new division, and record appropriate provisions for the relevant financial year.