Applicability of IndAS 19

The Ministry of Corporate Affairs (MCA) has issued a notification on 16 February 2015 announcing a roadmap for the implementation of IND AS. The roadmap provides a phase-wise approach which is shown in the graphic below:

Roadmap.001 (1)

Definition of Business Entities:

Accounting standards are applicable to all businesses. Depending on the size of the corporate, certain provisions of the standard are exempt.

Corporate entities are divided into the following categories:

1) Companies – Small and Medium Companies (SMC) & Non-SMC

2) Other than Companies

What benefits are to be valued actuarially for IND AS 19 accounting?

Any benefit that gives rise to an obligation in the future year but the obligation arises out of past events eg. Service of the employee to the company. This typically includes post-employment and other long term benefits.

Types of Employee Benefits:

What are the relaxations?

Below are different graphics, explaining the implications of the actuarial valuations & its disclosures as per various types of employee benefits:

Applicability of Actuarial Valuations for Post Employment Benefits:

Applicability of Actuarial Valuations for Other Long Term Benefits:

Applicability of Actuarial Valuations for Short Term & Termination Benefits: