For long-term employee benefits, under IFRS, US GAAP or Dutch GAAP, employers may need to recognize a liability on their balance sheet. With specific requirements for each accounting standard, these can be complex questions.
Offering a pension plan, jubilee plan or other long-term employee benefit plan to your employees also has consequences for your balance sheet. For the one benefit a liability needs to be calculated and recognized while for a different type of benefit recognizing the annual premiums in the profit or loss account is sufficient. On top of that, different accounting standards require different treatments which will impact your balance sheet while often being open for (some) interpretation. The variety of benefits, accounting standards and interpretation leads to questions: how to treat a specific benefit under a specific accounting standard? What is the liability that should be recognized? How to transfer the long-term employee benefit liabilities from one accounting standard to another accounting standard?
Deloitte has many years of experience in advising on and valuating long-term employee benefits with respect to IFRS, US GAAP, IPSAS and Dutch GAAP. We understand the intricacies of the accounting standard and know what the best practice interpretations are. Our Deloitte IFRS Centre of Excellence is on top of any (proposed) changes in the accounting standards, which enables us to proactively engage with you on the impact of those changes.
We offer a wide range of solutions to fully support your year-end long-term employee benefit valuation process:
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