PLAN ASSET- Employe benefits

Yasaswi Gomes new (Finance ) (4514 Points)

28 February 2024  

Hi

I hope EPF & ESIC doesn't fall under the scope of a Plan Asset in the balance sheet because the employee and employers contributions are deposited into bank. I understand, U/S 80c deductions due to employee investments don't fall under this purview. 

So, what is a plan asset example in companies? Does it mean a company has the legality to take 5% out of CTC and invest it long term in bonds and shares or mutual funds and accumulate money to pay for their employee postretirement benefit? 

Please give me a plan name and a company which uses this plan asset.

I've ID'd Gratuity (Obligation) & Insurance as plan assets for the moment. Please advise me what companies use most

 

Reg