Other long-term benefits

Learning objectives

• Explain that the components of the cost of an other long-term employee benefit are recognised in profit or loss, including remeasurements.L2
• Recognise the change in the liability for an other long-term employee benefit in profit or loss.L2

Normative references

• IAS 19 §153Other long-term employee benefits include, if not expected to be settled wholly within twelve months after the end of the annual reporting period in which the service is rendered, long-term paid absences, jubilee or other long-service benefits, long-term disability benefits, profit-sharing and bonuses and deferred remuneration; their simplified accounting is set out in paras. 154 to 156.
• IAS 19 §156For other long-term employee benefits, the entity recognises in profit or loss the net total of service cost, net interest and remeasurements, unless included in the cost of an asset; unlike post-employment benefits, no remeasurement is recognised in other comprehensive income (para. 154).

Original summaries of the paragraphs (reference register), never a quotation of the standard.

3 questions

• Elvane SA has two commitments. The liability for its long-service bonus, paid after twenty years of service, suffers a remeasurement loss of 5,100. The liability of its defined benefit pension plan suffers a remeasurement loss of 12,000. Where are these two losses recognised?L2
• The long-service bonus of Pavane SA is an other long-term benefit (case data). Its liability increases by {service_cost} for service cost, {interest} for interest and {remeasurement} for a remeasurement loss, with no payment in the year. Post the entry for the year.L2
• Orion SA grants its employees a jubilee benefit paid after 25 years of service; it is not expected to be settled wholly within twelve months after the end of the annual reporting period in which the related service is rendered (case facts). In which category of employee benefits does IAS 19 place this benefit?L1