Ma'am how would you account for employees being laid off (because of redundancy), where the directors are of the opinion that they are self employed and that they haven't paid any compensation for redundancy in that jurisdiction. (ACCA question) Can we are argue for a provision as per ias 37 and 19 as there could be a constructive obligation as they might have provided compensation in other jurisdictions and self employed employees are paid wages/other short term payments. Does IAS 19 provide for self employed employees? Thank you!
1.Currently, companies usually pay twice a month, for example, the salary for July 2023 is to open on the 10th equal to 50% and open on July 25th equal to 50%. How to register accounting? 2.Currently, companies usually pay twice a month, for example, the salary for July 2023 is to open on the 20th equal to 50% and open on August 5 equal to 50%. How to register accounting?
If that relates to the salary of that month, just recognize the expense in that month. For example, you may decide to recognize the salary expense on the last day of the month for simplicity. Any payments are then recognized as either advances paid or decrease of liabilities. So: 1. In this case, just account for both payments as Debit Advances paid to employees/Credit Bank account, and then on 31 July account Debit PL-Salary expenses Credit Advances paid. 2. Here, the first payment is in July for July, so the entry is as above, then you have the expense on 31 July: Debit P/L Salary expenses 100%, Credit Advances paid 50%, Credit Liabilities to empoyees 50%; and then the payment in August Debit Liabilities to employees/Credit Bank account. Of course, that all depends on the specific systems in the company.
