P2 (int) Ias 19

[Vivienne]

i have just finished studying the chapter on ias 19 employee benefits.i am just clear on the definitions used like current service cost, past service cost ,actuarial gains and losses etc but i am not comfortable as to how to do the accounting treatments in the balance sheet and income statement for the defined benefits.it seems i require some simplified notes to be able to understand or is there someone willing to explain.

[Vivienne]

I would like to appeal to the experts for p2 at gtg. what is hapenning .we are not getting feedback for the p papers. its a week now since i posted some questions on IAS 19 but up to now no response. when are we begining to get the material for the p papers i remember you promised that they will be out by mid february.

[Tia]

Hi Vivienne

Extremely sorry you had to wait this long for a reply. But this definitely is something that will cheer you up.

Your questions are answered in the P2 Study Text which will be out by next week. You can refer to the administrator's post on the General ACCA - P papers discussion forum.

Regards
Pritika.

[Vivienne]

Hi Pritika

I am so grateful that you have responded to my mail.and also glad by the efforts you are making in helping us.you said the study text will be out by next week this is a great relief. what about the question bank and the notes when are they coming out.

[Tia]

Hi Vivienne

Sorry about the delay. The Keynotes and Question bank should most probably be out by early April.

Pritika.

[Vivienne]

thanks for the response. we shall wait april is not too late for the revisions.

[ccsian]

i have just finished studying the chapter on ias 19 employee benefits.i am just clear on the definitions used like current service cost, past service cost ,actuarial gains and losses etc but i am not comfortable as to how to do the accounting treatments in the balance sheet and income statement for the defined benefits.it seems i require some simplified notes to be able to understand or is there someone willing to explain.

Hi Vivienne,

Hope this helps:):

1. Company's contribution to the Plan

Dr Plan Asset (BS)
Cr Company Cash (BS)

2. Current Servise Cost (CSC)

Dr CSC (IS)
Cr Defined Benefit Obligation<DBO> (BS)

3. Past Service Cost (PSC)

a> vested
Dr PSC (IS)
Cr DBO (BS)

b> Non Vested
Dr Unregconised PSC (BS)
Cr DBO (BS)

4. Interest Cost (IC)

Dr IC (IS) - x% * b/d DBO
Cr DBO (BS)

5. Expected Return on Plan Asset (ERPA)

Dr Plan Asset (BS)
Cr ERPA (IS) (Y% * b/d Plan Assets)

;)

[Vivienne]

thanks for your response . it has come at the right time when am doing my revisions. let me attempt a question and see how it goes then i will get back if i need more clarification.