CA Final Course Paper 1 :Financial Reporting Chapter 1 Unit 15

CA. Mandar Dixit

Recorded on: 23-May-2014

The Institute of Chartered Accountants of India
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ICAI 2

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 Objective Scope

Post Employment Benefits

Payable during the Service
Short Term Employee Benefits
Other Long Term Benefits
Defined Contribution Plans
Defined Benefits Plans
Past Service Cost
Plan Assets
Curtailments and Settlements
Presentation

Termination Benefits Types of Plans

Question Time Lesson Summary

ICAI 4
 Accounting and disclosure of Employee Benefits

Provide the liability for services which shall be paid in

future

Recognize an expense when economic benefit is

consumed from the services rendered

ICAI 5
 ICAI 6
 Formal
Plan/Agreements

Employee Legislative
Benefits Requirements

Informal
Practices

ICAI 7
 Short Term Long Term Post Employment Termination
Employee Benefits Benefits Benefits Benefits

Sabbatical
Salary, wages Gratuity Retrenchment
Leave

social security Long Service Voluntary

Pension
contributions Awards Retirement

Long Term
annual paid
Disability Medical Care
leaves
Benefits

Medical,
housing, car

ICAI 8
 Benefits provided to employees, spouse, children, dependents

Settled by payment to above beneficiary/their legal

heir/nominees/trusts/insurance companies either in money/provision of
goods/services

Employee may be

full time/part time

permanent/casual/temporary
director/management personnel

ICAI 9
 Applicable to employer and not to employee benefit plans

Does not cover employee share based payments

Level I Enterprises In Entirety

Level II and II Enterprises Certain exemptions as under:

Avg. No of employees employed Avg. No of employees employed

during the year is less than 50
Recognition, measurement &
disclosure principles Defined
benefit plan and long-term
employee benefits will not apply
to such enterprises. However
liability to be provided based on
some rational method
during the year is 50 or more
Recognition, measurement &
disclosure principles in respect
of defined benefit plans does not
apply. However accrued liability
in respect of defined plan based
on projected unit credit method
and actuarial valuation

ICAI 10
 ICAI 11
 Short Term
Compensated
Absences
Short Term
Employee Benefits
Payable during the Profit Sharing and
Service Bonus
Other Long Term
Benefits

ICAI 12
 ICAI 13
 Employee benefits other than termination benefits which fall due
wholly within 12 months after the end of the period in which employee
renders the related service

Recognition and Measurement

Expense and liability/asset when service is rendered

Discounting is not required

No specific disclosure Other AS may require e.g. AS 18 Key

managerial personnel remuneration

ICAI 14

Accumulating compensated
absences - Carried forward
and can be used in future
periods if the current
periods entitlement is not
used in full
Vesting - entitled to a cash
payment for unused
entitlement on leaving the
enterprise
Non-accumulating
compensated absences - Do
not carry forward. They lapse
if the current periods
entitlement is not used in
full and do not entitle
employees to a cash
payment for unused
entitlement on leaving the
enterprise.

Non vesting not entitled to a

cash payment for unused
entitlement on leaving the
enterprise

ICAI 15
 Expenses and
Vesting e.g.
liability/asset
Privilege
when services
Leaves
are rendered

Accumulating
Expenses and
liability/asset
Non Vesting - applying
Compensated e.g. Sick probability i.e.
Absences leaves how many
leaves shall be
Non
Expense and availed
Accumulating
liability only
e.g.
when absence
maternity/pat
occurs
ernity leaves

ICAI 16
 100 employees
Each entitled to 5 working days of leave for each year
Unused leave may be carried forward for one calendar year
Leave shall be utilized on LIFO basis
At 31 December 2012, the average unused entitlement is 2 days per employee
The enterprise expects, based on past experience that 92 employees will take 5 days of
leave and 8 employees will take 6.5 days each
What shall be number of days for which the liability shall be recognized in the year 2012?

Answer:-
The enterprise expects that it will pay an additional 12 days of pay as a result of the
unused entitlement that has accumulated at 31 December 2012 (one and a half days
each, for eight employees).
Therefore, the enterprise recognizes a liability, as at 31 December 2012, equal to 12
days of pay

ICAI 17
 Profit Sharing
Minimum period with Company
Increase in the obligation as the period of service increases
Reflects the possibility of exit of employee before completion of the period

Bonus
May not be a legal obligation
No realistic alternative but to pay due to past practices

Reliable estimate
Formula for determining the amount of the benefit
The amounts to be paid before the financial statements are approved
past practice gives clear evidence of the obligation to be paid

ICAI 18
 ICAI 19
 Long-term compensated
Jubilee or other long-service
absences such as long-service Long-term disability benefits
benefits
or sabbatical leave

Profit-sharing and bonuses

Deferred compensation paid
payable twelve months or more
twelve months or more after
after the end of the period in
the end of the period in which
which the employees render
it is earned
the related service

ICAI 20
 Balance Sheet Profit and Loss A/c

PV of defined benefit obligation Current service cost

Fair value of Plan Assets Interest cost

The expected return on any plan assets

Actuarial gains and losses

Past service cost

The effect of any curtailments or

settlements

ICAI 21
 ICAI 22
 Post employment retirement benefits

Post employment Other benefits

Defined Contribution Plans

Defined Benefit Plans

ICAI 23
 ICAI 24
 post-employment benefit plans under which an enterprise pays fixed
contributions

into a separate entity (a fund) and

will have no obligation to pay further contributions if the fund does not hold
sufficient assets to pay all employee benefits relating to employee service in the
current and prior periods

ICAI 25
 Obligation limited to amount agreed to contribute

Actuarial Risk i.e. benefits will be less than expected borne by employee

Investment Risk i.e. assets invested will be insufficient to meet expected

benefits borne by employee

Undiscounted basis except where they do not fall due wholly within twelve
months after the end of the period in which the employees render the
related service.

ICAI 26
 Multi-
employer

Non-
State Plan
controlled

Funded
DCP Insured
(Mostly)

Trust/Legal
Controlled
Entity

ICAI 27
 ICAI 28
 Obligation to provide agreed benefits

Actuarial Risk i.e. benefits will be less than

expected borne by employer
Investment Risk i.e. assets invested will be
insufficient to meet expected benefits borne by
employer
The obligations are measured on a discounted
basis

ICAI 29
 At balance sheet date
Present
Unrecog Defined
value of Fair
nized Benefit
Defined value
Past Liability
Benefit of Plan
Service (DBA if
Obligatio Assets
Cost negative)
n

Periodicity of valuation of DB obligation and Plan

Assets Sufficient regularly

ICAI 30
 In P&L A/c Total of below
current service cost

interest cost

the expected return on any plan assets

actuarial gains and losses

past service cost

effect of any curtailments or settlements

ICAI 31
 ICAI 32
 Measure the present value of the post-employment
benefit obligations and the related current service cost.

Projected Unit Credit Method

each period of service as giving rise to an additional unit of benefit

entitlement and measures each unit separately to build up the final
obligation
discounts the whole of a post-employment benefit obligation, even if
part of the obligation falls due within twelve months of the balance
sheet date

ICAI 33
 1% of final salary for each year of service, is payable on termination of service

The salary in year 1 is Rs.10,000

7% increase (compound) in each year resulting in Rs. 13,100 at the end of year 5

The discount rate used is 10% per annum

Expected to leave at the end of year 5

Assuming that there are no changes in actuarial assumptions

ICAI 34
 Year 1 2 3 4 5
Benefit attributed to:
- prior years 0 131 262 393 524

- current year (1% of final salary) 131 131 131 131 131

- current and prior years

Opening Obligation (see note 1) - 89 196 324 476

Interest at 10% - 9 20 33 48
Current Service Cost (see note 2) 89 98 108 119 131

Closing Obligation (see note 3)

Notes:

1. The Opening Obligation is the present value of benefit attributed to prior years.

2. The Current Service Cost is the present value of benefit attributed to the current year.

3. The Closing Obligation is the present value of benefit attributed to current and prior years.
ICAI 35
 An enterprise should attribute benefit to periods of
service under the plans benefit formula

employees service in later years will lead to a materially

higher level of benefit than in earlier years, an enterprise
should attribute benefit on a straight-line basis
From the date when service by the employee first leads to benefits
under the plan
Until the date when further service by the employee will lead to no
material amount of further benefits under the plan

ICAI 36
 Employee service gives rise to an obligation under a
defined benefit plan even if the benefits are not vested
E.g. A plan pays a benefit of Rs. 100 for each year of service. The
benefits vest after ten years of service
A benefit of Rs. 100 is attributed to each year. In each of the first
ten years, the current service cost and the present value of the
obligation reflect the probability that the employee may not
complete ten years of service

ICAI 37
 A post-employment medical plan reimburses 40% of
medical costs if the employee leaves after more than 10 and
less than 20 years of service and 50% of those costs if the
employee leaves after twenty or more years of service.
Under the plans benefit formula, the enterprise attributes 4% of the
present value of the expected medical costs (40% divided by ten) to each
of the first ten years and 1% (10% divided by ten) to each of the second
ten years.

ICAI 38
 ICAI 39
 Actuarial Assumptions
Enterprises best estimates of the
variables that will determine the
ultimate cost of providing post-
employment benefits
Demographic assumptions
Future characteristics of current
and former employees (and their
dependents) who are eligible for
benefits

Financial assumptions
Market expectations, at the
balance sheet date, for the period
over which the obligations are to
be settled

ICAI 40
 Mortality, both during and after employment;

Rates of employee turnover, disability and early retirement;

The proportion of plan members with dependents who will

be eligible for benefits; and

Claim rates under medical plans; and

ICAI 41
 The discount rate

Future salary and benefit levels

In the case of medical benefits, future medical costs, including, where material, the
cost of administering claims and benefit payments

The expected rate of return on plan assets

ICAI 42
 Currency and term of the
government bonds should be
Market yields at the balance sheet
consistent with the currency and
date on government bonds
estimated term of the post-
employment benefit obligations

In case of illiquid bonds - Current

market rates of the appropriate
term to discount shorter term
payments, and estimates the
discount rate for longer maturities
by extrapolating current market
rates along the yield curve

ICAI 43
 Estimated future salary increases

Benefits set out in the terms of the plan at the BS date

Estimated future changes in the level of any stated benefits

Estimated future changes in the cost of medical services, resulting

from both inflation and specific changes in medical costs.

ICAI 44
 Recognition of gains/losses
Recognized immediately in the statement of profit and loss
as income or expense

Reason for gains/losses

increases or decreases in either the present value of a
defined benefit obligation or the fair value of any related
plan assets

ICAI 45
 unexpectedly high or low rates of employee turnover

early retirement

early mortality

increases in salaries

Increase in medical costs

changes in the discount rate

actual return on plan assets and the expected return on plan
assets

ICAI 46
 ICAI 47
 Past service cost is the change in
the present value of the DBO for
employee service in prior periods,
resulting in the current period from
the introduction of, or changes to,
post-employment benefits or other
long-term employee benefits.
Recognize past service cost as an
expense on a straight line basis
over the average period until the
benefits become vested
ICAI
Past service cost may be either
positive (where benefits are
introduced or improved) or negative
(where existing benefits are
reduced).
To the extent that the benefits are
already vested immediately
following the introduction of, or
changes to, a defined benefit plan,
an enterprise should recognize past
service cost immediately
48
 Pension plan that provides a pension of 2% of final salary for each year of
service.

The benefits become vested after five years of service.

On 1 January 20X5 the enterprise improves the pension to 2.5% of final

salary for each year of service starting from 1 January 20X1.

At the date of the improvement, the present value of the additional benefits
for service from 1 January 20X1 to 1 January 20X5 is as follows:

ICAI 49
 Employees with more than five years service at 1/1/X5
- Rs.150

Employees with less than five years service at 1/1/X5 -

Rs. 120 (average period until vesting: three years)

Answer:

The enterprise recognizes Rs. 150 immediately because those

benefits are already vested. The enterprise recognizes Rs. 120 on a
straight-line basis over three years from 1 January 20X5.

ICAI 50
 ICAI 51
 Fair value

Discounting expected future cash flows using a discount rate that reflects both
the risk associated with the plan assets and the maturity or expected disposal
date of those assets

When, and only when, it is virtually certain that another party will reimburse
some or all of the expenditure required to settle a defined benefit obligation, an
enterprise should recognize its right to reimbursement as a separate asset

ICAI 52
 The expected return on plan assets is a component of the
expense recognized in the statement of profit and loss.

The difference between the expected return on plan assets and

the actual return on plan assets is an actuarial gain or loss.

Market expectations, at the beginning of the period, for returns

over the entire life of the related obligation

ICAI 53
 At 1 January 20X1, the fair value of plan assets was Rs. 10,000.

On 30 June 20X1, the plan paid benefits of Rs. 1,900 and received
contributions of Rs. 4,900.

At 31 December 20X1, the fair value of plan assets was Rs. 15,000 and the
present value of the defined benefit obligation was Rs. 14,792.

Actuarial losses on the obligation for 20X1 were Rs. 60.

At 1 January 20X1, the reporting enterprise made the following estimates,

based on market prices at that date:

ICAI 54
 Interest and dividend income, after tax payable by the fund - 9.25%

Realized and unrealized gains on plan assets (after tax) - 2.00%

Administration costs - 1.00%

Expected rate of return - 10.25%

For 20X1, the expected and actual return on plan assets are as follows

ICAI 55
 Particulars Rs.
Return on Rs. 10,000 held for 12 months at 10.25% 1,025
Return on Rs. 3,000 held for six months at 5% (equivalent 150
to 10.25% annually, compounded every six months)
Expected return on plan assets for 20X1 1,175
Fair value of plan assets at 31 December 20X1 15,000
Less fair value of plan assets at 1 January 20X1 (10,000)
Less contributions received (4,900)
Add benefits paid 1,900
Actual return on plan assets 2,000
The difference between the expected return on plan assets (Rs.
1,175) and the actual return on plan assets (Rs. 2,000) is an
actuarial gain of Rs. 825. Therefore, the net actuarial gain of Rs.
765 (Rs. 825 Rs. 60 (actuarial loss on the obligation)) would be
recognized in the statement of profit and loss.
ICAI 56
 ICAI 57
 A curtailment occurs when an enterprise either:
has a present obligation, arising from the requirement of a
statute/regulator or otherwise, to make a material reduction in the
number of employees covered by a plan
amends the terms of a defined benefit plan such that a material
element of future service by current employees will no longer
qualify for benefits, or will qualify only for reduced benefits

May arise from Isolated event such as:

Closing of a plant
discontinuance of an operation or termination or suspension of a
plan

ICAI 58
 A settlement occurs when an
A settlement occurs together
enterprise enters into a
with a curtailment if a plan is
transaction that eliminates all
terminated such that the
further obligations for part or
obligation is settled and the
all of the benefits provided
plan ceases to exist.
under a defined benefit plan

However, the termination of a

plan is not a curtailment or
settlement if the plan is
replaced by a new plan that
offers benefits that are, in
substance, identical

ICAI 59
 An enterprise should recognize gains or losses on the curtailment or
settlement of a defined benefit plan when the curtailment or settlement
occurs

gain or loss on a curtailment or settlement should comprise:

any resulting change in the present value of the defined benefit obligation;
any resulting change in the fair value of the plan assets;
any related past service cost that had not previously been recognized

Remeasure the obligation (and the related plan assets, if any) using current
actuarial assumptions

ICAI 60
 Defined Benefit Obligation Fair Value Plan Assets of Unrecognized Past Service
with NPV Rs. 1000 Rs. 820 Cost Rs. 50

Of the previously
unrecognized past service
Increased net liability due cost and transitional
Curtailment reduces the
to adoption of Plan one amounts, 10% (Rs. 100/Rs.
NPV of obligation by Rs.
year before Rs. 100 to be 1000) relates to the part of
100
recognized over 5 years the obligation that was
eliminated through the
curtailment

ICAI 61
 Particulars Before Curtailment After
curtailment Gain Curtailment
Net present value of 1000 (100) 900
obligation
Fair value of plan (820) - (820)
assets
180 (100) 80
Unrecognized past (50) 5 (45)
service cost
Unrecognized (80) 8 (72)
transitional
amount (100x4/5)
Net liability recognized (50) (87) (37)
in balance sheet

ICAI 62
 ICAI 63
 An enterprise should offset an asset relating
to one plan against a liability relating to
another plan when, and only when, the
enterprise:
has a legally enforceable right to use a surplus in one
plan to settle obligations under the other plan; and
intends either to settle the obligations on a net basis, or
to realize the surplus in one plan and settle its obligation
under the other plan simultaneously.

ICAI 64
 Accounting policy for recognizing
actuarial gains and losses

General description of the type of plan

Reconciliation of opening and closing balances of the present value

of the defined benefit with:
current service cost
interest cost
contributions by plan participants
actuarial gains and losses
benefits paid
past service cost
Amalgamations, curtailments and settlements

ICAI 65
 Analysis of Funded and Non Funded Defined Benefit
Plans

A reconciliation of the opening and closing balances

of the fair value of plan assets with:
expected return on plan assets
actuarial gains and losses
contributions by the employer
contributions by plan participants
benefits paid
Amalgamations, curtailments and settlements

ICAI 66
 a narrative description of the basis used to determine the overall expected rate
of return on assets

the principal actuarial assumptions used as at the balance sheet date

the effect of an increase of one percentage point and the effect of a decrease of
one percentage point in the assumed medical cost trend rates

the amounts for the current annual period and previous four annual periods
present value of the defined benefit obligation, the fair value of the plan assets
and the surplus or deficit in the plan

ICAI 67
 ICAI 68
 Termination benefits are employee benefits payable as a result
of either:
an enterprises decision to terminate an employees employment
before the normal retirement date; or
an employees decision to accept voluntary redundancy in exchange
for those benefits (voluntary retirement).
Legislation, contractual, obligation based on business practice,
custom or a desire to act equitably, to make payments to
employees when it terminates their employment. Such payments
are termination benefits.
The payment of such benefits is certain (subject to any vesting
or minimum service requirements) but the timing of their
payment is uncertain
Voluntary or Involuntary termination of service
Termination benefits are recognized as an expense immediately
Where there is uncertainty about the number of employees who
will accept an offer of termination benefits, a contingent liability
exists
ICAI 69
 ICAI 70
 Defined contribution plans or defined
benefit plans that
pool the assets contributed by various enterprises
that are not under common control; and
use those assets to provide benefits to employees of
more than one enterprise, on the basis that
contribution and benefit levels are determined
without regard to the identity of the enterprise that
employs the employees concerned

ICAI 71
 Where a multi-employer plan is a defined benefit plan,
an enterprise should:

account for its proportionate share of the defined benefit obligation,

plan assets and cost associated with the plan in the same way as for
any other defined benefit plan; and
disclose the information same as DBP

When sufficient information is not available to use

defined benefit accounting for a multi-employer plan
that is a defined benefit plan, an enterprise should:

ICAI 72
 account for the plan as if it were a defined contribution plan;

disclose:

the fact that the plan is a defined benefit plan; and

the reason why sufficient information is not available to enable the enterprise to account for the plan as
a defined benefit

An enterprise may not be able to identify its share of the underlying financial position
and performance of the plan with sufficient reliability for accounting purposes

plan exposes the participating enterprises to actuarial risks associated with the
current and former employees of other enterprises

ICAI 73
 GAP is merely an aggregation of single
employer plans combined to allow
participating employers to pool their
MEP are distinct from GAP.
assets for investment purposes and
reduce investment management and
administration costs.

GAP pose no particular accounting

problems because information is readily
available to treat them in the same way as
The claims of different employers are
any other single employer plan and
segregated for the sole benefit of their
because such plans do not expose the
own employees.
participating enterprises to actuarial risks
associated with the current and former
employees of other enterprises

ICAI 74

Defined benefit plans that share risks
between various enterprises under common
control, for example, a parent and its
subsidiaries, are not multi-employer plans
If there is a contractual agreement or stated
policy for charging the net defined benefit
cost for the plan as a whole to individual
group enterprises, the enterprise recognizes,
in its separate financial statements, the net
defined benefit cost so charged.

If there is no such agreement or policy, the

net defined benefit cost is recognized in the
separate financial statements of the group
enterprise that is legally the sponsoring
employer for the plan. The other group
enterprises recognize, in their separate
financial statements, a cost equal to their
contribution payable for the period.

ICAI 75
 An enterprise should account for a state plan in the same way as for a
multi-employer plan

State plans are established by legislation to cover all enterprises and are
operated by national or local government or by another body which is not
subject to control or influence by the reporting enterprise.

Some plans established by an enterprise provide both compulsory benefits

which substitute for benefits that would otherwise be covered under a state
plan and additional voluntary benefits. Such plans are not state plans

ICAI 76
 Many state plans are funded in a manner such that contributions are set at a
level that is expected to be sufficient to pay the required benefits falling due in
the same period; future benefits earned during the current period will be paid
out of future contributions.

Nevertheless, in most state plans, the enterprise has no obligation to pay those
future benefits: its only obligation is to pay the contributions as they fall due
and if the enterprise ceases to employ members of the state plan, it will have no
obligation to pay the benefits earned by such employees in previous years.

For this reason, state plans are normally defined contribution plans

ICAI 77
 An enterprise may pay insurance premiums to fund a postemployment benefit
plan. The enterprise should treat such a plan as a defined contribution plan
unless the enterprise will have an obligation to make the shortfall good.

Enterprises retains an obligation and treats the plan as DBP when:

Qualifying insurance policy is an insurance policy issued by an insurer that is not a related party of the
reporting enterprise, if the proceeds of the policy:
can be used only to pay or fund employee benefits under a defined benefit plan; and
are not available to the reporting enterprises own creditors (even in bankruptcy) and cannot be paid
to the reporting enterprise, unless either:
the proceeds represent surplus assets that are not needed for the policy to meet all the related
employee benefit obligations; or
the proceeds are returned to the reporting enterprise to reimburse it for employee benefits already
paid.

ICAI 78
 Test Yourself MCQs

ICAI 79
 Short-term employee benefits do not include

a) Employer's social security contributions

b) Bonuses payable more than 12 months after the end of the period in
which the related employee services are performed

c) Benefits in kind

d) Short-term sick pay

Answer: Option B

ICAI 80
 An employer's statement of financial position should show
a liability equal to the expected amount payable in the
following 12 months as a result of unused entitlement to
non-accumulating compensated absences. True or False

a) True

b) False

Answer: Option B

ICAI 81
 Defined benefit plans are post-retirement benefit plans
where:

a) The employer pays an agreed level of contributions into the pension fund
each year and is not obliged to make any further contributions

b) The risk that benefits will be less than expected falls upon the employees

c) The employer is legally obliged to provide an agreed level of post-

employment benefits

d) The employer is legally or constructively obliged to provide an agreed

level of post-employment benefits

Answer: Option D

ICAI 82
 In the case of a defined benefit plan, the employer's
statement of financial position should show

a) A liability equal to the undiscounted defined benefit obligation at the

end of the reporting period
b) An asset equal to the cost of the plan assets at the end of the reporting
period
c) An asset or liability equal to the difference between the present value of
the defined benefit obligation at the end of the reporting period and the
d) An
fair asset
value ofor liability
the equal at
plan assets to the
the end
difference between the
of the reporting present value
period
of the defined benefit obligation at the end of the reporting period and
the cost of the plan assets at the end of the reporting period
Answer: Option C

ICAI 83
 In the case of a defined benefit plan, the expense
shown in the employer's statement of
comprehensive income should normally include

a) The present value of the current service cost for the reporting period

b) The interest cost for the period

c) Any actuarial losses for the period

d) All of the above

Answer: Option D

ICAI 84
 The interest cost in relation to a defined benefit plan arises
because the accumulated benefits which employees had
earned at the end of the previous period are now one
period closer to being paid. True or False?

a) True

b) False

Answer: Option A

ICAI 85
 In the case of a defined benefit plan, actuarial gains
may arise because

a) The actual returns on plan assets are less than the expected returns

b) The actual returns on plan assets are greater than the expected returns

c) There are adverse differences between actuarial assumptions made at the end of the
previous period and actual events which have occurred in the current period

d) There are adverse changes in actuarial assumptions between the start and the end of the
current period

Answer: Option B

ICAI 86
 Which of the following items is always
treated as a long-term employee benefit?

a) A bonus payable within 12 months after the end of the period in which the related employee services are
performed

b) Employee wages and salaries

c) A bonus payable more than 12 months after the end of the period in which the related employee services
are performed

d) A company car provided for an employee's use

Answer: Option C

ICAI 87
 Redundancy payments to employees should be recognized
as an expense as soon as the employer is considering
making those employees redundant. True or False

a) True

b) False

Answer: Option A

ICAI 88
 As per Actuarial valuation there is surplus of Rs. 6 lakhs.
Company wants to reduce the contributions by Rs. 3 lakhs
for next 2 years and amortize the surplus over 2 years.
Correct or Incorrect?

a) Correct

b) Incorrect

Answer: Option B

ICAI 89
 Types of Employee Benefits

Defined Benefit Plans

Defined Contribution Plans

Types of Plans State Plans, MEP, Insured Benefits

Actuarial valuation Method and assumptions

Presentation and disclosure

ICAI 90
 ICAI 91