Interest-free and concessional staff loans create an employee benefit that often goes unrecognised, because the loan sits on the boundary between two standards. This post sets out the employee loan accounting treatment under IAS 19 and IFRS 9, with a worked example showing the profit and loss impact each year.
The INR yield curve steepened significantly between March 2025 and March 2026, with long-term rates rising 60-90 basis points. For most companies, this translates to a welcome reduction in gratuity and leave encashment liabilities under Ind AS 19 and AS 15.
India’s four labour codes are now in effect, but critical questions remain unanswered. This employer-focused guide addresses the most pressing new labour code FAQs, particularly around the 50% wage rule and what constitutes ‘total remuneration’.
Last Updated Data Source CCIL NDS-OM Method Nelson-Siegel Discount Rates in India The chart shows Numerica’s zero-coupon discount rate curve for India: annually compounded spot rates by maturity, constructed each trading day from Government of India securities traded on the Clearing Corporation of India’s NDS-OM platform. Hover over the curve for the rate at any […]
The Social Security Code 2020, which officially came into effect on November 21, 2025, introduces major reforms that will substantially increase gratuity payouts and extend coverage to millions of contract workers across India. This comprehensive guide explains how these changes affect employees, employers, and actuarial valuations. Key Takeaways: India’s New Gratuity Rules 2025 Effective Date: […]
Before we start with taxation on superannuation fund, let us understand what exactly is a superannuation fund. Makes sense, so what is superannuation fund ? Cambridge dictionary defines “superannuation” as “money that people pay while they are working, so that they will receive payment when they stop working when they are old, or the payment they receive when they stop working” So, in simple words, superannuation funds refer to the […]
Under the right circumstances, a decision for funding a gratuity scheme could deliver significant benefits to the companies. Gratuity is a statutory benefit – employers are required to pay a lumpsum benefit to their employees who have served for at least five years. The lumpsum is generally calculated as 15 days of eligible salary for […]
Treatment of leave schemes under AS 15 and Ind AS 19 is widely misunderstood. Companies end up spending resources on actuarial valuation of leave schemes that may not require any, while fail to identify schemes that may require one. Background Companies run several types of leave benefit schemes for their employees. Privilege leaves (also known as earned or […]
Companies often ask us if an actuarial valuation mandatory for leave schemes. It is clear that accounting and audit professionals require some additional guidance on this matter. In this post, we aim at addressing this issue. The short answer is, an actuarial valuation will be applicable if your company offers leave benefits that would require […]
With the rise in start-ups in India, we are observing an increasing trend in share-based remuneration schemes to the employees, the most popular ones being ESOP and SAR. However, we have observed a gap amongst professionals and company personnel, in the knowledge of the different types of schemes and their accounting treatment. As such, in this […]