Introduction
According to the conceptual framework for the preparation and presentation of the financial statements, “recognition is the process of incorporating in the balance sheet or income statement an item that meets the definition of an element and satisfies the criteria for recognition”, while the “measurement is the process of determining the monetary amounts at which the elements of the financial statements are to be recognised and carried in the balance sheet and income statement” (NTU, 2011). In other words, during the process of recognition, any item must belong on the financial statements and should have probable future economic benefits flow to or from the enterprise and can be reliable and relevantly measured at the cost or value. So in order to prepare good financial statements, proper recognition and reliable measurement are necessary and important.
Unfortunately, this concept comes with some surrounding issues, and this easy aimed to explore and discuss the issues surrounding the recognition and measurement of the particular item – employee benefits in the financial statements of British Airways plc, which is the UK’s largest international scheduled airline and one of the world’s leading global premium airlines (BRITISH AIRWAYS, 2011). The author planed to critically analysis three mainly employee benefits, which are short-term employee benefits, post-employment benefits and the termination benefits, through the British Airways annual report.
However, the measurement may be complicated. Sometimes the company need to estimate the amount of benefits and recorded in the financial statements, like the holiday pay and health care.
But for one thing, the company still need to figure out a better way to measure t...
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Iatridis, George. 2010, International Financial Reporting Standards and the quality of financial statement information. Vol. 19, Issue 3, page 193-204. International Review of Financial Analysis
IFRS Foundation, 2011, IAS 19 Employee benefits. [Online] Accessed on 27/11/2011, available at: http://www.ifrs.org/NR/rdonlyres/085C6BBB-A728-4F08-B00F-D7F5B5C9910C/0/IAS19.pdf
Melville, Alan. 2009, International financial reporting: A practical guide. 2nd edition, London: Prentice Hall
NTU, 2011, Framework for the preparation and presentation of financial statements. [Online] Accessed on 21/10/2011, available at: https://now.ntu.ac.uk/d2l/lms/content/viewer/main_frame.d2l?ou=130510&tId=611855
PWC, 2011, IFRS and US GAAP: similarities and differences – expense recognition-employee benefits. Vol. October, page 69-71. PWC LLP
IASB revenue recognition benchmarks entering the merging venture comprised of two gauges, IAS 18 and IAS 11. IAS 18 worries about revenues including offer of products, administrations, intrigue, eminences and profits. IAS 11 centers around development contracts. Likewise with all IASB gauges, these standard give standards-based direction without particular direction at the exchange level. The guidelines of U.S. GAAP, gave by FASB, then again comprise of an arrangement of more than one hundred revenue related direction of particular principles on an industry and exchange level; in any case, a great part of the general direction is given by Statement of Financial Accounting Concepts No. 5, a non-legitimate wellspring of U.S. GAAP. The IASB and FASB are ready to embrace a joint standard on revenue recognition. This new world standard would adopt an advantage obligation strategy, for example, that of pre-meeting IFRS, while containing more particular direction than IFRS clients are acquainted with seeing, taking a signal from the GAAP guidelines of the United
Saussy, P. F. (2004). EMPLOYEE BENEFIT PLANNING ROADMAP. Journal of Financial Service Professionals, 58(2), 10-10+. Retrieved from http://ezproxy.villanova.edu/login?url=http://search.proquest.com/docview/209618200?accountid=14853
Financial Accounting Standards Board. (1985). Statement of Financial Accounting Standards No. 86. Norwalk. Retrieved April 7, 2014, from http://www.fasb.org/cs/BlobServer?blobkey=id&blobnocache=true&blobwhere=1175820922177&blobheader=application%2Fpdf&blobheadername2=Content-Length&blobheadername1=Content-Disposition&blobheadervalue2=189998&blobheadervalue1=filename%3Dfas86.pdf&blobcol=url
Gibson, C. H. (2011). Financial reporting & analysis: Using financial accounting information. (12th ed.). Mason, OH: South-Western Cengage Learning.
In the article entitled Benefits and Business at AFLAC and L.L. Bean, the author Sandra Reed covers a substantial scope of business problems confronted inside organizations, for example, worker advantages and in addition remuneration. Reed additionally discusses various studies that have been researched on this point and how the consequences of these studies have shown how those two difficulties, benefits and compensation, are parts of the most imperative regions of a representative's employment. (Reed, 2009) Another range of discourse inside the article is a territory inside the workforce that has changed radically which is that of representative obligations and roles inside an organization. An issue connected with this change is the way that
To begin, as of September 2010, companies have spent an average of approximately $19,000 per employee to provide discretionary benefits and these benefits account for as much as 30.5 percent of payroll costs. They are offered at the will of each company and employees often view them as entitlements. At the same time, while not recommended, employers reinforce the entitlement mentality by awarding employees regardless of their performance. Next, the three types of benefits include protection programs, paid time off, and services offered by the organization. Protection programs are an incentive to provide benefits for families, as well as promote health. In addition, the benefits guard employees against income loss caused by catastrophic events
Many employees when looking for a job or deciding whether to stay with their current employment often considers the employee benefits the company offers.
Gibson, C. H. (2011). Financial reporting & analysis: Using financial accounting information. (12th ed.). Mason, OH: South-Western Cengage Learning.
One of the most debatable topics in the accounting industry today is the extent in which we should make the financial statements understandable to the general population. The FASB currently gears its reporting standards toward...
With human resource management becoming the most comprehensive subject when it comes to the management of people in organizations, it is imperative to reiterate the importance of worker compensation in the confines of managing labor. The chief purpose of this term paper is to analyze the Soergel (1) report on the state of employee compensation in the U.S. Based on the report that was presented by the Labor Department of the United States; there were not changes in the patterns of employee compensation in the country. Therefore, it is quite necessary to explain the trend and the implication for work input and the upcoming performance of the labor market as a whole.
Employee benefits coordinator play a significant role in Human Resource Management. Employee Benefits coordinators are responsible for assisting with employee benefits, maintaining employee data base, managing all insurance billings and maintain employee files, sick pay, vacation and retirement. This study explores the importance of employee benefits to corporations, government agencies and non profit organizations. This paper also researches the effects on the management team and on individual employees’.
The globalization of business has resulted in the need for compatible accounting standards that can be used internationally for financial reporting. As a result, the International Financial Reporting Standards (IFRS) were developed by the International Accounting Standards Board (IASB) to unify the various financial reporting methods and create a single accounting standard which can be applied to any financial statement worldwide (Byatt). The global standardization of financial reporting will increase the readability and enhance comparability of globally traded companies’ financial statements, without the need of conversion or translation. There are a few main differences between the International Financial Reporting Standards (IFRS) and the U.S. Generally Accepted Accounting Principles (U.S GAAP). The increasing recognition and acceptance of the International Financial Reporting Standards by accounting professionals in the United States, will affect the way in which the U.S will record financial statements in the future.
The purpose of this document is to describe the nature, purpose and scope of accounting and it deliberately explains the details of each category in accounting. Accounting involves in preparing financial documents of an entity by analyzing, verifying, and reporting this records. It emphasizes its major characteristic role in field of banking and finance, with a mixture of supportive sub topics.
Peasnell, KV 1982, ‘The function of a conceptual framework for corporate financial reporting’, Accounting & Business Research, vol. 12, issue. 48, pp. 243-256, viewed 05 May 2014
A compensation package includes salary but also includes other non-salary benefits such as: health-care benefits, 401(k) plans, PTO (paid time off) and other perks. Businesses often utilize experienced Human Resources professionals to review, update and create salary scales and compensation packages for new hires. The total compensation package is often used as means of attracting employees who will complement the organization and should be consistently reviewed, acting as an incentive for retaining qualified staff. “Organizations that are not able to develop competitive pay scales along with strong compensation packages, face the risk of a competitor offering a more attractive package, which can result in employee turnover” (Dias, 2011, pg.