Fringe Benefits Analysis

3547 Words15 Pages
ABSTRACT This assignment is related to employee benefits, types of employee benefits, accumulating and non-accumulating annual leaves and vesting and non-vesting sick leaves under international financial reporting standards. IAS 19 Employee Benefits (amended 2011) outlines the accounting requirements for employee benefits, including short-term benefits (e.g. wages and salaries, annual leave), post-employment benefits such as retirement benefits, other long-term benefits (e.g. long service leave) and termination benefits. The standard establishes the principle that the cost of providing employee benefits should be recognized in the period in which the benefit is earned by the employee, rather than when it is paid or payable, and outlines how…show more content…
Common examples of fringe benefits include medical and dental insurance, use of a company car, housing allowance, educational assistance, vacation pay, sick pay, meals and employee discounts. Total compensation includes regular income and all of these paid benefits. The importance of fringe benefits towards employees is to create, improve sound industrial relations and boost up employee morale. It also motivates the employees by identifying and satisfying their unsatisfied needs. Creating a sense of belongingness among employees and retain them. Hence, are often called golden hand – cuffs. Fringe benefits also protect the health of the employees and to provide safety to the employees against accidents. Provide qualitative work environment, work life and promote employees welfare by provide welfare measures like recreation facilities. Fringe benefits also provide security to the employees against social risks like old age benefits and maternity…show more content…
Ltd is a family business, named after the founder of the company, the eldest brother of a family originating from Ba town in Fiji. Vinod Patel left school at the age of 16 to work so that his earnings could go towards supplementing the family’s income. Less than a year later, his younger brother Umakant Patel left school and joined the workforce for the same reason. After working at hardware stores in Ba and nearby towns, the brothers thought it was time that they had a business of their own. April, 1962 was the inception of the first Vinod Patel store in Ba Town. Business was good for Vinod Patel & Co Ltd. As other brothers joined the business, the time was right to expand and open a second branch in Rakiraki in 1965, a town without any hardware store. From then on it was a matter of seeking out opportunity and working hard to make it a success. Vinod Patel & Co Ltd (VPCL) is an established company based in the Fiji Islands. VPCL has been dealing in hardware, retail and export for more than 50 years. Vinod Patel & Co Ltd offers quality products, reliable service and customized solutions to its customers. Today VPCL has branches located at all major town and cities, employs over 700 staff and has a product range of more than 30,000 items in hardware, building material, tools, plumbing & sanitary ware, tiles, paints, electrical, home ware& giftware, white goods, furniture & furnishing and industrial

More about Fringe Benefits Analysis

Open Document