Compensation and other benefits Essay Example | Topics and Well Written Essays - 1000 words

Compensation and other benefits - Essay Example There are different types of accounting treatment and enclosures for employee compensation and benefits. These include short term, post-employment, long term, and termination benefits. Post-employment employee benefits are into single-employer and multiemployer plans respectively. This paper seeks to explore the different compensation types and how their respective account treatment and disclosures operate. Examples of short-term benefits include compensated absences, profit sharing, and bonuses. These are payable within twelve months following the end of employee’s service rendering period. Others are non-monetary and include housing, medical, cars, and subsidized goods and services. Accounting for these benefits is straightforward since actuarial assumptions are not for measuring the cost or obligation. Besides, any actuarial gain or losses are often not possible. Additionally, short-term benefits requirements are measured through undiscounted means. Some standards may require disclosures regarding employee benefits especially for key personnel managers (THE EU SINGLE MARKET, 2009). Post- employment benefits entail a given entity identified to offer benefits plans. The standard is then applied to all agreements regardless of whether or not they entail establishing a different entity to collect contributions then pay benefits. Examples of post-employment benefits are pensions and other benefits including medical care and life insurance. These benefits can be either through defined plans, based on the scheme’s economic perspective obtained from its critical terms or through defined plan of contribution. A pension scheme maintained by one employer is known as single-employer plan while that supported by different employers is referred to as multiemployer plan. The defined type of contribution plan is accounted for in a direct manner because for every period, the obligation of the reporting entity depends on the amounts likely to be