Context · Dated fact of the file
Aldoran: from salaries to the settlement of the plan
Aldoran SA
IAS 19 · Case studies (Step 3 of 5)
Practical case
- Course
- Exercises
- Case studies
- Workpapers
- Exams
File · Progressive casePath L1 → L4L1 · Fundamental
Aldoran: from salaries to the settlement of the plan
Aldoran SA
1 document5 tasks
- Period
- Year N
- Standards
- IAS 19 — Employee Benefits
- Levels
- 0 / 4 levels validated
- Current level
- L1 · Guided≈ 120 min
Assistance levelFull guidance · strong assistance
- Method: shown
- Checklist: shown
- Hints: shown
- Step-by-step work: shown
Case brief
L1 · Guided · Year N
Level 1: short-term benefits and the defined contribution plan
Aldoran SA, a fictitious furniture manufacturer, IFRS consolidated statements, year end 31 December, functional and presentation currency: the euro. Facts and amounts are case data; discount rates and other actuarial assumptions are case data. Case convention: unless stated otherwise, benefits and contributions are paid at year end. Conclusions come from IAS 19.
At the end of year N, the pay due, carried-over leave, the annual bonus and the sales staff plan contribution have to be accounted for (the standard is announced at this level).
Fundamental level: the method, help and references are shown.
Method
- 1Read the brief and the assignment.
- 2Open each document and spot the relevant data.
- 3Carry out the work in the suggested order.
- 4Submit, then read the conclusion and the model answer.
File checklist
- Open each piece (0 / 1 consulted) · to do
- Answer the questions of the level (0 / 5) · to do
- Validate the level, then read the conclusion · to do
Events
The file, period by period
2 / 6 stages reached
Initial event · L1·Year N · Current stage
Level 1: short-term benefits and the defined contribution plan
At the end of year N, the pay due, carried-over leave, the annual bonus and the sales staff plan contribution have to be accounted for (the standard is announced at this level).
Pieces added
- Exhibit 1: Aldoran's employee benefits at the end of year N (case data)
New information · L2·Year N · Upcoming: unlocks after the current stage
Upcoming stage
New period · L3·Year N+1, 1 January – 1 July · Upcoming: unlocks after the current stage
Upcoming stage
New period · L4·Year N+1, year end · Upcoming: unlocks after the current stage
Upcoming stage
Conclusion · Upcoming: unlocks after the current stage
Upcoming stage
Documents
Case documents
1 document to work from at this level.
Document 1Supporting document
Exhibit 1: Aldoran's employee benefits at the end of year N (case data)
| Topic | Data |
|---|---|
| Payroll | December monthly payroll: €440,000 for 22 working days; the last 11 working days will be paid in January |
| Carry-over paid leave | Workshop: 24 employees × 5 days carried over × €160 per day; office: 15 employees × 3 days × €220 per day; opening liability for leave: €11,000; carried-over days are expected to be taken next year |
| Annual bonus | Paid every year for six years under the formula "2.5% of profit before bonus", announced to all employees; profit before bonus: €2,800,000; expected departures before payment: 4% of the bonus; no contract requires it |
| Sales staff plan | Contribution of 5% of pensionable salaries of €1,200,000 paid to an insurer; the company has no other commitment; €52,000 already paid, the balance in January |
| Long-service award | Paid at 10, 20 and 30 years of service; mostly payable after more than twelve months |
| Termination payments | No departure offer in progress at the reporting date |
Amounts are case data. No flow is assumed during the year other than those indicated.
Data
Facts of the file
- Entity
- Aldoran SA
- Period
- Year N
- Current level
- L1 · Guided
- Standards
- IAS 19 — Employee Benefits
Pieces carried over from earlier levels
First level: all the data is in the brief and the pieces of this level.
Questions
5 parts to answer, marked when you submit the level.
- Information to identify1
- Calculations2
- Analysis and judgement1
- Journal entries1
Information to identify
Find the useful facts in the pieces before concluding.
Part 1 · Classification · Recognition
Classify each benefit in exhibit 1 in its category.
ItemShort-termPost-employmentOther long-term
December pay paid in January
Annual bonus paid in spring
Contribution paid to the insurer for the sales staff's retirement
Long-service award payable after twenty years of service
4 more questions will appear once the current question is complete.
Complete the question to continue.
Workspace
Your working draft for this file: points noted, leads, intermediate calculations.
Saved on this device only; never graded.
Conclusion
Answer every part to submit the level and see the conclusion.
Normative references
- IAS 19 §8
- IAS 19 §11
- IAS 19 §13
- IAS 19 §19
- IAS 19 §26
- IAS 19 §64
- IAS 19 §83
- IAS 19 §99
- IAS 19 §115
- IAS 19 §120
- IAS 19 §122
- IAS 19 §122A
- IAS 19 §123
- IAS 19 §123A
- IAS 19 §127
- IAS 19 §153
- IAS 19 §165
- IAS 19
- IAS 19 §101A
- IAS 19 §166