How employee benefits could become liabilities
Rentokil's recent decision to restructure the group as a result of applying International Accounting Standard (IAS) 19, employee benefits, demonstrates the potentially significant impact of adopting International Financial Reporting Standards (IFRS).
While IAS 19 and the UK's FRS 17, retirement benefits, are largely similar, companies using Statement of Standard Accounting Practice (SSAP) 24, accounting for pensions costs, will experience a bigger change.
The scope of IAS 19 is wider than that of FRS 17 and covers all forms of consideration paid for employee services as employee benefit
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