Are we allowed to deffer the Voluntry retirement expenditure as per AS 26 or should we write it off
shakuntala chhangani
(FCA Course co-ordinator WIRC coaching centre)
(2525 Points)
Replied 03 November 2011
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
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