Important Points for IC 83 - Group Insurance and Retirement Benefit Schemes Exam
Page 18 Of 49
Go to:
When there is substantial decrease in the number of employees as in the case of a unit shutting down or otherwise curtailment arises.
A settlement occurs when a plan is permanently settled, say, by paying lump sum amount and plan ceases to exist.
The objective Indian Accounting Standard 19 Standard is to prescribe the accounting and disclosure for employee benefits. The standard requires an entity to recognise: A liability when an employee has provided service in exchange for employee benefits to be paid in the future; An expense when the entity consumes the economic benefit arising from service provided by an employee in exchange for employee benefits.
Under defined benefit plans: The entitys obligation is to provide the agreed benefits to current and former employees; Actuarial risk and investment risk fall, in substance, on the entity. If actuarial or investment experience are worse than expected, the entitys obligation may be increased.
Accounting for defined benefit plans is complex because actuarial assumptions are required to measure the obligation and the expense and there is a possibility of actuarial gains and losses.
MODELEXAM® 
www.realsoftinfoplan.com