LECTURE 1
EMPLOYEE BENEFITS - are all of consideration
given by an entity in exchange for services
rendered by employees or for termination of
employments.
Entity – employer
Employee – may include key management
personnel or directors
 Hindi hinihiwalay yung salary don sa benefits na
other than the salary, (sa taxation pwedeng
hinihiwalay sila, pero dito ay hindi)
POST –EMPLOYMENT BENEFITS
Tapos ka na sa trabaho like parang pasok yung
katulad ng retirement fund hindi necessary na
60 or 65 years old ka na basta natapos na
employment in formal way like yung nasa
contract ganern.
 DEFINED CONTRIBUTION PLAN – (entity na
pov) sigurado na yung icocontribute,
expense ang treatment
dr. Employee benefit expense xxx
cr. Cash
xxx
end entry na kasi wala ka na pakialam tapos
na obligation mo eh
if may expense na pero di pa nabayaran edi
lagyan ng ACCRUED PAYABLE
kapag 100k babayaran mo pero 150k
binayad mo edi add ka ng PREPAID
o Contributory – hindi lang si employer
ang nagcocontribute but as well as
employee tho sayo naman mapupunta
yung fund
o Non-contributory – si employer lang
nagcontrib but still sayo ang punta ng
fund
o Funded – may nagcocontribute, may
third party na nagmamanage ng fund
whereas yung purpose nong fund is sa
retirement mo and yung 3rd party
magbigay sayo pero galling don sa
fund, pag funded contributory edi
nagcontribute ka but still sayo pa rin
o Unfunded – unfunded pero not
necessarily
mean
wala
kang
matanggap or walang fund literally but
walang third party na nagmamanage
and yung fund is for general hindi lang
for retirement, still may matatanggap
ka.
 Maganda syempre yung funded
dzuh
 DEFINED BENEFIT PLAN – sigurado ang benefit
like fixed na yung matatanggap mon a
benefit, contribution ang nag aadjust ditto.
Investment ang treatment here
GENERATION NOW SHOULD NOT THINK NA
MAGING STABLE AFTER RETIREMENT KATULAD
NONG UNANG PANAHON KASI NGAYON ANG
MGA COMPANY AY MORE ON DEFINED
CONTRIB ANG GAMIT KASI MAS NAGBEBENEFIT
ANG ENTITY DON UNLIKE MEFORE NA DEFINED
BENEFIT
Short term – prolly 12 mos.
Other long term - yung wala ron sa post emplo,
short-term employ at termination bene
Termination – a) sila nagdesisyon hindi ikaw
kaya bibigyan ka ng termination benefits (kaya
dapat hindi ikaw ang magresign, sila
magtanggal sayo)
b) ikaw nagdesisyon IF AND ONLY IF dahil
inofferan ka ng company na pag umalis ka may
mareceive kang termination benefits
LECTURE 2
DEFINED BENEFIT PLAN - a post-employment
benefit plan wherein an employee is
guaranteed specific or definite amount of
benefit which is usually related to his/her salary
and years of service.
Fixed yung benefit, hindi natatapos ang kwento
sa contribution, may pakialam ka sa halos lahat
like sa contribs, funds, lifespan ni employee etc.
therefore Investment ang treatment
COMPONENTS OF DEFINED BENEFIT COST
EMPLOYER TAYO DITO
Now: matatanggap ni employee ang salary
Later: post employee benefit rerecord na pero
later pa matatanggap
- Matching principle – you should record the
related expenses kung saan mo natanggap
yung mismong benefits. Kung kelan nagrender
ng service yung empleyado don irerecord
lahat ng related expenses non even if sa
matagal na panahon pa niya yon
matatanggap.
 Service Cost – nagrender ka(employee) ng
service therefore makakatanggap ka ng
employer benefits. Nagrender ka ng service
ngayon kahit later mo pa mareceive ang
benefit record na agad kasi current service
cost. Every year ka nakatatanggap ng
salary therefore every year din nacontrib si
employer sa fund wherein matatanggap
mo sa retirement mo.
o Current service cost
 let say 18k sahod mo atfirst, eventually
ofcourse tataas niyan
 pwedeng ang base ay yung salary mo
at the retirement year or last sahod mo,
 factors to consider: salary, length of
service, lifespan of the employee.
(magpoproject ng future sahod ng
employee then magworkback wherein
in real life actuarian nagcocompute
HINDI CPA)
 pinepresent value
 post benefit plan ay fixed na mula
umpisa alam mon a ang csc mo is
based sa last year salary mo
 nagkakaroon ng discounting kasi
magfuture ka tapos magpresent tho
logical naman daw
 nagrender ka ng service ngayon kaya
need mo magrecord ng related
expense, ang amount ay depende sa
pinirmahan mo
o Past Service Cost
 Pag may introduction like during your
work nag intro ng plan, Related sa
lumipas na panahon na nagtrabaho
ka na before nagkaplan
 Pag may amendment, yung binago
bigla during your work, thus kasama
yung trinabaho mon a before
amendment
 Wala ng allocation na magaganap, it
is what it is
o Any gain or loss on settlement
 Pwedeng installment or one time
depende sa agreement
 Net Interest – Expense through P/L
o Int. Exp on Defined benefit obligation Projected Benefit Obligation; Yung
planned asset naga accumulate;
Habang gumagalaw nagkakaron ng
Interest expense
o Int. income on Plan assets –
o Int. exp on the effort of asset ceiling
 Remeasurements – OCI
o Plan Assets
o Projected benefit obligation
o Effects of Asset ceiling
LECTURE 3
CURRENT SERVICE COST – is the increase in the
present value of the defined benefit obligation
from employee service in the current period
- Hindi undiscounted value ilalagay, yung
present value