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IAS 19 Employee Benefits

IAS 19 Employee Benefits prescribes the accounting and disclosure by employers for all employee benefits, including wages and salaries, bonuses, paid annual leave, pensions and termination benefits.

Published February 1998. Effective 1 January 1999. Amended 2011. Effective 1 January 2013.

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Synopsis

IAS 19 prescribes the accounting treatment of short-term employee benefits, post employment benefits, other long-term employee benefits and termination benefits.

  • Short term benefits owing to an employee at the period end should be accrued.
  • Defined contribution pension scheme contributions should be recognised in profit or loss.
  • The present value of defined benefit pension scheme obligations less the fair value of scheme assets should be shown in the statement of financial position. The movement in the value of the scheme is split into its constituent parts and each accounted for separately. Remeasurements including actuarial gains and losses are recognised as other comprehensive income.
  • Other long-term benefits are dealt with in a similar, albeit simpler, way to pension schemes.
  • Termination benefits are accrued where an entity is demonstrably committed to both the termination and the provision of termination benefits.

Which version of the standard?

'Which version of the standard?' is only available to members of the Financial Reporting Faculty. Please note that to access electronic versions of IFRS through the links in these standard trackers you need to have first logged into eIFRS.

Annual period starts
Effective version of standard
Notes on amendments 
On or after 1 January 2021 IAS 19 2019 Issued Standards 
Includes amendments 1 – 5
1 January 2019 – 31 December 2020
IAS 19 2019 Required Standards
Includes amendments 1 - 4
1 January 2016 – 31 December 2018
IAS 19 2018 Required Standards
Includes amendments 1 - 3

Required Standards book for a particular year assumes that there is no early application of issued but not yet effective IFRSs; The Issued Standards book assumes early application of all issued IFRSs. For the latest version of the standard, and where the amendments are to be adopted early, refer to IAS 19 2019 Issued Standards.

Recent amendments

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*Not EU endorsed as at 26 March 2019. Read more on EU Endorsement

The following interpretations refer to IAS 19

Current proposal

As part of its Disclosure Initiative the Board has added a targeted Standards-level review of disclosure requirements to its work plan. The project involves developing guidance to be used by the Board when drafting new disclosure requirements. IAS 19 has been selected as one of two Standards that will be used to test the new guidance.

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This page was last updated 26 March 2019