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IFRS for SMEs Employee Benefits and Share-Based Payment Flashcards

6 cards from real IFRS for SMEs) practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

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  1. Under IFRS for SMEs, actuarial gains and losses on defined benefit plans are recognized:

    Answer: Either in profit or loss or in other comprehensive income, as an accounting policy choice

    IFRS for SMEs permits actuarial gains and losses to be recognized either in profit or loss or in other comprehensive income as a policy choice.

  2. Under IFRS for SMEs, the net defined benefit liability recognized on the balance sheet equals:

    Answer: Present value of the defined benefit obligation minus fair value of plan assets

    The net defined benefit liability is the present value of the defined benefit obligation less the fair value of any plan assets.

  3. Under IFRS for SMEs, which employee benefits are classified as 'other long-term employee benefits'?

    Answer: Benefits not expected to be settled wholly within 12 months, excluding post-employment benefits and termination benefits

    Other long-term employee benefits are those not expected to be settled within 12 months after year-end, such as long-service leave, and are distinct from post-employment and termination benefits.

  4. Under IFRS for SMEs, what is the measurement basis for termination benefits expected to be settled within 12 months?

    Answer: Undiscounted amounts

    Termination benefits expected to be settled within 12 months of the reporting date are measured at undiscounted amounts.

  5. Under IFRS for SMEs, what discount rate is used to measure the defined benefit obligation?

    Answer: Market yield on high-quality corporate bonds or government bonds at the reporting date

    IFRS for SMEs requires the use of the market yield on high-quality corporate bonds (or government bonds where there is no deep market) to discount the defined benefit obligation.

  6. Under IFRS for SMEs, service cost for a defined benefit plan includes:

    Answer: Current service cost and, if applicable, past service cost

    Service cost comprises current service cost (benefit earned in the period) and any past service cost arising from plan amendments.

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