International Accounting Standard 19 - Employee Benefits aims to prescribe the manner of accounting and disclosure of employee benefits.
In accordance with the standard of employee benefits include:
- short-term employee benefits (benefits that will be paid in the period of 12 months after the end of the annual reporting period in which employees provided relevant services)
- benefits after termination of employment
- other long-term employee benefits
- severance pay
This standard has given the greatest attention to benefits upon termination of employment. In the Republic of Serbia, this form of income is considered to be severance pay that is paid upon regular retirement in accordance with the Law, in double the amount of the average salary. Considering that the employee will retire in the future, the calculation on this basis is complex and requires the application of actuarial techniques.
To understand actuarial techniques, it is important to keep in mind the actuarial valuation methods and actuarial assumptions used. It is also important that the benefits are attributed to the period in which the employees worked.
WTS team specializes in making actuarial calculations and calculating provisions for severance pay upon retirement.
Also, the use of actuarial techniques is necessary to use when it comes to other long-term employee benefits.
The most common form of long-term income in the Republic of Serbia in accordance with this standard is jubilee awards. In accordance with the Labor Law, the company has the right to determine the employee's right to a jubilee award and on that basis has the obligation to make a certain reservation.
WTS team can also assist you in making actuarial reports and provisions relating to jubilee awards as well as other types of actuarial reports and reservations.