IAS 19 · Workpapers (Step 4 of 5)
Workpaper assignment
- Course
- Exercises
- Case studies
- Workpapers
- Exams
Accrual of short-term employee benefits: salaries, accumulating absences, bonus or profit sharing and constructive obligation
Short-term benefits: accrual for salaries, accumulating absences and a bonus with a constructive obligation
Section 1 of 9
Objective
Section brief
- What to document
- The engagement, its scope and the working mode chosen.
- Why
- A workpaper answers one precise question: framing it avoids off-topic work.
- How
- Read the objective and the assignment, then choose the mode (guided, semi-guided, professional).
- Expected result
- You know which question the workpaper must settle, and for which reporting date.
- Your role
- Preparer of the IAS 19 workpaper
- Level
- Foundation
- Estimated time
- ≈ 60 min
- Progress
- 0 / 5 steps done (review excluded)
Context
Aldrane SA (fictitious entity) closes its accounts on 31 December 20X6. You prepare the accounting for the employee benefits due at the closing date: December salaries, unused leave that can be carried forward to the next year, the annual bonus and a departure offer made at the end of the year.
Assignment
Short-term benefit accrual of Aldrane
Purpose of the workpaper
Record the benefits due at the closing date, their settlement date, the bonus formula and the past practice. Each benefit is recognised at the undiscounted amount expected to be paid; the judgment on the constructive obligation is supported, and the amounts, formulas and practices are case data.
Questions of the file covered by this workpaper
- Compute the accrual for the unused accumulating absences.
- Is there a constructive obligation to pay the bonus at the closing date?
- Compute the bonus to be recognised.
- Compute the total short-term benefit liability.
- Record the December salaries still due.
- Record the accrual for the accumulating absences.
- Record the bonus.
Documents in the file
Open the documents to pick out the relevant information.