The Institute of Chartered Accountants of India (ICAI) had issued Accounting Standard 15 initially in 1995 after that the same has revised by the ICAI in 2005. This revised Standard is an improvement version of old AS 15 (1995).
The revised AS 15 has significant impact on the financial reporting of the enterprises:
1. This is covered all types of Employee Benefits, except share base payments.
2. Definition of employee under the revised AS-15 includes part time, causal and temporary employees.
3. Treatment of provident fund as defined contribution rather than defined benefit.
4. Treatment of gratuity scheme funded with LIC as defined benefit rather than defined contribution.
5. Deferral of past service cost, which was not permitted by pre revised As-15.
6. Prescribed actuarial assumptions and method for valuation of employee benefits.
7. Application of the transitional provisions.
8. Tax effects of the above items.
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