The disclosure of the short-term, long-term, and termination benefits employee benefits Essay

Post-employment benefits are classified into two plans which are defined contribution plan and defined benefit plan. The defined contributions plan is recognized as an expense as the employee renders service to the entity. For the defined benefits plan, it can be recognized as defined benefit liability from the net total amount of the present value of the defined benefit obligations at the reporting date, based on the actuarial assumptions, minus the fair value of any plan assets at the reporting date, plus actuarial gains not recognised, and finally minus past service cost not yet recognized.
Other long-term employee benefits shall be recognised a liability after the present value of the defined benefit obligation at the reporting date is minus with the fair value of any plan assets at the reporting date. It also can be recognized as expense or income when the net total of specified amounts including current service cost, interest cost, actuarial gains and losses, and past service costs.
Termination benefits are recognized a liability and an expense when the entity is demonstrably committed to either terminate the employment of the employee(s) before the normal retirement date or provide termination benefits as a result of an offer made in order to encourage voluntary redundancy.
The paid absence under short-term employee benefits is measured through the amount that the entity expects to pay additionally at the end of the reporting date because of the unused entitlement. For profit-sharing and bonuses payments, they are not expected to be paid wholly during the 12 months of the reporting period.
The measurement of defined contribution plan under post-employment benefits is expected to be paid in the whole amount during the 12 months of the reporting period and they will be given a discount. In order to measure the present value of the post-employment benefit obligations and the related current service cost, it is necessary to apply an actuarial valuation method, attribute benefit to periods of service, and make actuarial assumptions.
Other long-term employee benefits shall be measured through the obligations that reflects the probability the payment will be required and the length of time for which payment is expected to be made.
The entity shall measure the termination benefits by using the same requirements as the post-employment benefits. If not, the requirement of the short-term employee benefits may be applied if the expected amount to be settled fully during the 12 months before the end of the reporting date and the requirement of the other long-term employee benefits can be applied if the amount are not expected to be paid within the 12 months after the end of reporting date.
The disclosure of the short-term, other long-term employee benefits, and also termination benefits are not stated under this MFRS. The entity shall disclose the amount of defined contribution plan as an expense. Through Para 135, it states that the entity shall disclose the standard by explaining more about the defined benefit plan, elaborating the financial statements, and describing the uncertainty that may