Keywords: Mazars, Thailand, Accounting, FAP, Employee Benefits Obligation
07 March 2017
An employee benefits obligation is recognized if, as a result of a past event, the company has a present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation.
If the company does not have a retirement age policy, the company does not have a constructive obligation, so no outflow of economic benefits will be required.
As a result, where there is no employee benefits obligation, there is no requirement to recognize a liability for such in the company’s financial statements.
For more information (in Thai), please visit Federation of Accounting Professionals.