IC83 Study Notes | Page: 16

Within Indian accounting framework, As 15 deals with the accounting of employee benefits. There are four kinds of benefits under the standard viz. : Short term employee benefits, Termination benefits, Other long term benefits and Post employment or retirement benefits.
AS 15 requires that actuarial valuation should be done in respect of following employee benefits: Gratutity, Leave benefits, Pension schemes, Exempt Provident Fund, Long-term service awards, Bonus and Profit sharing arrangements, Leaves for leisure and travel purposes.
AS 15 is applicable on the following firms: Listed companies on any stock exchange in India, Banks/FIs/Insurance companies, Companies having turnover of more than 50 crores, Companies having borrowings or deposits of more than 10 crores, Companies employing more than 50 employees, Holding or subsidiary company of any of the above.
Short-term employee benefits include items such as: Wages, salaries and social security contributions, Short-term compensated absences where the absences are expected to occur within twelve months after the end of the period in which the employees render the related employee service; Profit sharing and bonuses payable within twelve months after the end of the period in which the employees render the related service; Non-monetary benefits for current employees.
Present value of Obligation (PVO) is present value of benefits payable on exit. It refers to actuarial liability.

Important Points for IC 83 - Group Insurance and Retirement Benefit Schemes Exam