(IFRS) for Small and Medium-sized Entities (SMEs)

IFRS FOR SMES – JULY 2009(b)as an expense, unless another section of this IFRS requires the cost to berecognised as part of the cost of an asset such as inventories or property,plant and equipment.Short-term employee benefitsExamples28.4 Short-term employee benefits include items such as:(a)(b)(c)(d)wages, salaries and social security contributions;short-term compensated absences (such as paid annual leave and paid sickleave) when the absences are expected to occur within twelve months afterthe end of the period in which the employees render the related employeeservice;profit-sharing and bonuses payable within twelve months after the end ofthe period in which the employees render the related service; andnon-monetary benefits (such as medical care, housing, cars and free orsubsidised goods or services) for current employees.Measurement of short-term benefits generally28.5 When an employee has rendered service to an entity during the reporting period,the entity shall measure the amounts recognised in accordance with paragraph28.3 at the undiscounted amount of short-term employee benefits expected to bepaid in exchange for that service.Recognition and measurement—short-term compensatedabsences28.6 An entity may compensate employees for absence for various reasons includingannual vacation leave and sick leave. Some short-term compensated absencesaccumulate—they can be carried forward and used in future periods if theemployee does not use the current period’s entitlement in full. Examples includeannual vacation leave and sick leave. An entity shall recognise the expected costof accumulating compensated absences when the employees render service thatincreases their entitlement to future compensated absences. The entity shallmeasure the expected cost of accumulating compensated absences at theundiscounted additional amount that the entity expects to pay as a result of theunused entitlement that has accumulated at the end of the reporting period.The entity shall present this amount as a current liability at the reporting date.28.7 An entity shall recognise the cost of other (non-accumulating) compensatedabsences when the absences occur. The entity shall measure the cost ofnon-accumulating compensated absences at the undiscounted amount of salariesand wages paid or payable for the period of absence.© IASCF 167