FARAP12BB - Post Employment Benefits

This is the present value of the estimate of the entity's retirement obligation in the future.

• Retirement Fund

• Defined Contribution Plan

• Defined benefit obligation

• Asset ceiling

Post employment plan includes -

• Salaries and wages

• Pension

• Informal Post employment life insurance

• Termination Benefits

• Non contributory post employment medical care

Answer explanation

Salaries and wages are short term benefits

Post employment benefits arrangements may be formal or informal, contributory or non contributory.

Termination benefits are not post employment benefits

Once the defined contribution is paid, the employer has no more obligation under the plan.

• True

• False

Obligations under DCP, are measured on an undiscounted basis except when they are not expected to be settled wholly within 12 months after the end of the reporting period.

• True

• False

Under a DBP, the expense recognized is equal to the amount of contribution for the period.

• True

• False

Any unpaid contribution under the DCP shall be recognized as expense in the period it is paid.

• True

• False

Answer explanation

In the period it is payable

The amount recognized as expense for DCP shall not be disclosed.

• True

• False

The obligation under DBP is measured on a discounted basis.

• True

• False

PAS 19R retires an entity to involve a qualified actuary in the measurement of a DBO.

• True

• False

Answer explanation

PAS 19R encourages but not requires entity to do so.

Service cost comprises -

• Current service cost

• Actuarial gains

• Loss on settlement

• Past service cost

Answer explanation

Actuarial gains or loses are remeasurement recognized through OCI