AS-15 deals with :

The correct answer is - Employee benefits

Key Points

• AS-15 is the Accounting Standard that deals with Employee Benefits.
• It provides guidance on the accounting treatment and disclosure of obligations related to employee benefits in financial statements.
• The standard includes various types of employee benefits such as:
  • Short-term benefits: Benefits like wages, salaries, and bonuses payable within 12 months of the reporting period.
  • Post-employment benefits: Includes pensions and other retirement benefits.
  • Other long-term benefits: Such as long-term compensated absences, jubilee benefits, etc.
  • Termination benefits: Benefits payable due to termination of employment.
• The objective of AS-15 is to ensure that the cost and obligations related to employee benefits are accurately recognized and disclosed.

Additional Information

• Scope of AS-15:
  • Applies to all entities except for small and medium-sized enterprises (SMEs) that may follow a simplified version.
  • Covers both formal and informal employee benefit plans, whether funded or unfunded.
• Accounting for Defined Benefit Plans:
  • AS-15 prescribes the use of the Projected Unit Credit Method for actuarial valuation of defined benefit plans.
  • Entities must recognize the present value of obligations, plan assets, and actuarial gains or losses in their financial statements.
• Difference from other standards:
  • AS-19: Deals with leases, unlike AS-15, which focuses on employee benefits.
  • AS-7: Focuses on construction contracts and their revenue recognition, which is unrelated to employee benefits.
  • AS-28: Relates to impairment of assets, not employee obligations.