Short-term Employee Benefits

Short-term employee benefits (other than termination benefits) are payable within twelve months after the end of the period in which the service is rendered. Accounting for these benefits is generally straightforward because no actuarial assumptions are required to measure the obligation or cost. Short-term employee benefits are broadly classified into four categories:

• regular period benefits (e.g., wages, salaries);
• short-term compensated absences (e.g., paid annual leave, maternity leave, sick leave etc.);
• profit sharing and bonuses payable within twelve months after the end of the period in which employee render the related services and
• non-monetary benefits (e.g., medical care, housing, cars etc.)