Under what heads sub-heads the following items will appear in the b/s- 1) Encashment of employees earned leave payable - Accountancy - Accounting Ratios

Question

Under what heads& sub-heads the following items will appear in
the b/s-
1) Encashment of employees earned leave payable on retirement
2) Employees earned leave payable on retirement

Nikhil Sehgal · Accepted Answer

Satvik, both these items are treated as employee benefit expenses
and their treatment is subject to Accounting Standard 15 The
treatment of both is based upon the words/quotes used Employees
earned leaves payable on retirement or Employees earned leaves
encashment payable on retirement is treated as long term provision
and accordingly shown under 'Non-Current Liabilities' However, if
the Leaves are encashable in the current year (i e if an employees
is retiring) then it is not a non-current liability but a current
liability Since, both the adjustments specified by you are payable
on retirement, accordingly these would be shown as 'Long Term
Provisions' under main head of 'Non-Current Liabilities'

Under what heads& sub-heads the following items will appear in the b/s- 1) Encashment of employees earned leave payable on retirement. 2) Employees earned leave payable on retirement.

Under what heads& sub-heads the following items will appear in the b/s-
1) Encashment of employees earned leave payable on retirement.
2) Employees earned leave payable on retirement.