The ANC is the required current contribution of the Company for the service to be rendered by the employees for this year.
The PSL is the liability of the company for the services rendered by their employees from date of hire to valuation date. The PSL can be paid in full or in amortized amount over a 3-year, 5-year, etc. but not to exceed the remaining working life of the employee group.
Below is an excerpt about International Accounting Standards (IAS) 19 taken from Deloitte. IAS 19 Employee Benefits (amended 2011) outlines the accounting requirements for employee benefits, including short-term benefits (e.g. wages and salaries, annual leave), post-employment benefits such as retirement benefits, other long-term benefits (e.g. long service leave) and termination benefits. The standard establishes the […]
RA 7641 prescribes minimum retirement benefit that companies must pay eligible retiring employees.
Since RA 7641 does not require companies to set up formal retirement plans, why, then, should the consider doing so?
We outline the process of creating a retirement plan and securing a tax qualification with this plan.
Here are some highlights on the comparison between the Amended PAS 19R and the ASC 715 (US GAAP) reporting of employee benefits: Computation methodology – both standards use the same projected unit cost method (PUCM) in determining the present valuation of the defined benefit obligation. Treatment of overfunded – in US GAAP, there is no […]
The Philippines has Republic Act No. 7641 (RA 7641), also known as the Retirement Pay Law.
Learn about International Accounting Standards (IAS) 19 as taken from Deloitte.
Learn about Republic Act (RA) 4197 as published by The Philippine Star.