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Employee benefits provisions

Publication date: 2014-03-31 22:41:45

In the valuation of pension and similar can be guided by the provisions of IAS 19 "Employee Benefits".

In the case of the creation of provisions changes in the value of money over time should be taken into account, while maintaining the principle of relevance.

Therefore, the amount of the provision relating to estimated future obligations should be - due to the discount rate - reflecting their present value (at the date of creation or revision of the reserve).

When applying the discount the carrying amount of a provision increases in each period with the passage of time. This increase is recognized as a finance cost in the profit and loss account.

S.Ekman ? General Manager
FY AUDIT/24iValue

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