Is Provision for employees benefits a long term provision?
Dear Student,
Until and unless something has been specified regarding nature of provision for employee benefits is generally regarded as 'Short term Provisions'. Employee benefits includes all forms of consideration given by an enterprise in exchange of services rendered by an employee. This includes salary, wages and short term benefits that are payable within twelve months after the end of period in which employee renders the services. Not only this, it also includes post employment benefits or termination benefits that are to be given to employees. However, for such benefits term generally used is 'Provision for retirement benefits' or any similar term.
Accordingly, we suggest you to record provision for employee benefits as short term provisions stating a note to reduce the chances of deduction of marks.
Until and unless something has been specified regarding nature of provision for employee benefits is generally regarded as 'Short term Provisions'. Employee benefits includes all forms of consideration given by an enterprise in exchange of services rendered by an employee. This includes salary, wages and short term benefits that are payable within twelve months after the end of period in which employee renders the services. Not only this, it also includes post employment benefits or termination benefits that are to be given to employees. However, for such benefits term generally used is 'Provision for retirement benefits' or any similar term.
Accordingly, we suggest you to record provision for employee benefits as short term provisions stating a note to reduce the chances of deduction of marks.