Entities are required to complete the recognition of provisions for future liabilities, including provisions for employee benefits. In the framework of accepted accounting principles (policies) you can apply simplifications, provided that they do not have significant adverse impact on the principle of true and fair view.

Individuals should make accruals in the amount of probable liabilities in the current reporting period, resulting from the execution, associated with the current activity, future employee benefits, including pension, whose amount can be reliably estimated, although the date of commitment is not yet known.

Provisions for employee benefits is regulated by IAS 19.

Provisions for employee benefits can include for example a provision for annual leave and provisions for retirement bonuses or jubilee awards.

Provision for leave

Unused vacation leave is for a calendar year and the previous years , unused by an employee till the year-end.

Accruals for unused annual leave in particular are made to leave production workers, wage earners depend on the results of work. The purpose of making appropriate reference costs to the period in which the entity actually achieved results of work of employees.

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