I - Provisions: General principles

Provisions for employee benefits: only long-term

Employee benefits aimed at meeting the obligations in respect with:

• Retirement benefits (L15600)
  It includes the pension fund surplus for retirement benefits when this account shows a credit balance. When it´s a debit, it is reported under "A20100 - Pension fund surplus".
• Other post-employment benefits (L15650) : including
  • life insurance
  • post-retirement medical.
• Other long-term benefits (L16930) : including
  • long-service leave or sabbatical leave,
  • jubilee or other long-service benefits,
  • long-term disability benefits and,
  • profit sharing, bonuses and deferred compensation, if they are payable twelve months or more after the end of the period
• Benefit plans not valued according to IAS 19 (L16920) : to be used where the plan liabilities are not material or where the differences between the IFRS and local valuation rules are not material.
• Termination benefits (L16950) : such as
  • early retirement

Notes:

• The short-term termination benefits used to be reported as such at PF1 companies are now reported as long-term or short-term restructuring (L15800 or L45800).
  The same applies for some miscellaneous provisions related to restructuring, which are now also reported as long-term or short-term restructuring.
• The post-employment benefit plans are classified under IAS 19 as either:
  • Defined Contribution plans or
  • Defined Benefit plans.
• Is shown separately, the "Pension fund surplus", the surplus which can occur when the value of the assets guaranteeing the pension obligations exceed these obligations. Though it relates to retirement benefits and other post-employment benefits, this caption is not part of the provisions for pensions as such.

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