Employee Benefits

      Short-term benefits 

The entity recognizes a liability net of amounts already paid and an expense for services rendered by employees during the accounting period. Short-term benefits given by the entity to its employees include salaries and wages, social security contributions, short-term compensated absences, bonuses and non-monetary benefits. 

 

Retirement benefits 


The entity’s net obligation in respect of its retirement plan is calculated by estimating the amount of future benefit that employees have earned in return for their service in the current and prior periods. The benefit is discounted to determine its present value, using the projected unit credit method. The discount rate is the yield at the reporting date of long-term government bonds that have maturity dates approximating the terms of the entity’s plan. 

 

Remeasurements of the net defined benefit liability, which comprise actuarial gains and losses, the return on plan assets (excluding interest) and the effect of the asset ceiling (if any, excluding interest), are recognized immediately in OCI. The entity determines the net interest expense (income) on the net defined benefit liability (asset) for the period by applying the discount rate used to measure the defined benefit obligation at the beginning of the annual period to the then net defined benefit liability (asset), taking into account any changes in the net defined liability (asset) during the period as a result of contributions and benefit payments. Net interest expense and other expenses related to defined benefit plans are recognized in profit or loss. 

 

When the benefits of a plan are changed or when a plan is curtailed, the resulting change in benefit that relates to past service or the gain or loss on curtailment is recognized immediately in profit or loss. The entity recognizes gains and losses on the settlement of a defined benefit plan when the settlement occurs. 

 

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