What does Accounting Standard 15 stand for?

For the purpose of AS 15, an employee is defined as an employee who may provide services to an entity on a full-time, part-time, permanent, casual or temporary basis. AS 15 also includes directors and other management personnel under the definition of employees.

What is covered by as 15?

As per AS 15, Short-Term employee benefits consist of: Wages, salaries and social security contributions. Short-Term paid absences such as paid annual leave where such absences are expected to take place within 12 months after the end of the period during which the employees provide related employee service.

How is gratuity calculated as per 15?

The formula is: (15 * Your last drawn salary * the working tenure) / 30. For example, you have a basic salary of Rs 30,000. You have rendered continuous service of 7 years and the employer is not covered under the Gratuity Act. Gratuity Amount = (15 * 30,000 * 7) / 30 = Rs 1,05,000.

Is actuarial valuation compulsory?

Actuarial valuations are required at the end of every accounting period for the purpose of preparation of financial statements. This is required by all enterprises, if AS 15 or Ind AS 19 is applicable, whether fully or partially.

What is prepaid salary?

Prepaid expenses are recorded in the books at the end of an accounting period to show true numbers of a business. Prepaid (Unexpired) salary is a personal account and is shown on the assets side of balance sheet.

Which are the accounting standards?

An accounting standard is a common set of principles, standards, and procedures that define the basis of financial accounting policies and practices. Accounting standards apply to the full breadth of a entity's financial picture, including assets, liabilities, revenue, expenses and shareholders' equity.

How is 15 and 26 gratuity calculated?

For calculating the per day wage of the employee, the monthly wage (last drawn Basic + Dearness Allowance) is divided by 26 and the result is multiplied by 15 x the number of years of service; i.e. Gratuity = (Basic + DA) x 15/26 x number of years.

What is the new rule for gratuity?

Change in gratuity rules According to the New Wage Code Bill 2021, employees will be entitled to gratuity even if they have been employed for just one year. However, right now, employees are getting gratuity after five years of continuous work in the same company.

What does actuarial mean in English?

1 : of or relating to actuaries. 2 : relating to statistical calculation especially of life expectancy.

What is fair value as per Ind AS?

9 This Ind AS defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

What is the entry of outstanding salary?

Outstanding salary is added to the salary and shown on the debit side of profit and loss account. It is further shown under the head current liabilities in the balance sheet. Outstanding salary is also known as Salary due (or) Salary payable.

Why prepaid salary is personal account?

Prepaid expenses are recorded in the books at the end of an accounting period to show true numbers of a business. Prepaid (Unexpired) expense is a personal account and is shown on the Assets side of a balance sheet. Expenses are amounts paid for goods or services purchased.

What are 5 accounting standards?

Accounting Standard 5 (AS 5) deals with the classification and disclosure of specific items in the Statement of Profit and Loss. The purpose of AS 5 is to suggest such a classification and disclosure in order to bring uniformity in the preparation and presentation of statement of net profit or loss across enterprises.

What are the 4 types of accounting?

Discovering the 4 Types of Accounting

• Corporate Accounting. ...
• Public Accounting. ...
• Government Accounting. ...
• Forensic Accounting. ...
• Learn More at Ohio University.

What is DA in salary slip?

DA or dearness allowance is calculated as a specific percentage of the basic salary which is then added to the basic salary along with other components like HRA (House Rent Allowance) to make up the total salary of an employee of the government sector.

What happens if gratuity is not paid?

If an employer fails to pay gratuity amount along with interest 30 days after the controlling authority has directed it to do so, the appropriate government, be it Central Government or State Government, whoever is concerned with the employing organization, will authorize the controlling authority to start prosecution ...

What is CTC salary?

CTC or cost to the company is the amount of money spent by the employer to hire a new employee. It comprises of several components such as HRA, medical insurance, provident fund, etc. which is added to the basic pay. The allowances may include meal coupons, cab service, subsidised loans, etc.

What is an actuarial gain?

Actuarial gain or loss refers to an increase or a decrease in the projections used to value a corporation's defined benefit pension plan obligations.