Voluntry retirement expenditure

AS 634 views 1 replies

Vijay

Student

95 Points Joined July 2009

Are we allowed to deffer the Voluntry retirement expenditure as per AS 26 or should we write it off

Replies (1)

shakuntala chhangani

FCA Course co-ordinator WIRC coaching c

2525 Points Joined October 2009

Hi Vijay, VRS is covered under AS 15 'Employee benefits' under the segment -termination benefits. As per AS 15, termination cast incurred upto 31.3.2007 can be deferred for 3 years, upto 31.3.2008 for 2 years and upto 31.3.2009 upto 1 year.Termination cost incurred in and after 31.3.2010 can not be deferred. It must be charged as an expense.

Regards, CA Shakuntala Chhangani