Latest Issue
ISSN : 2456-3676

Title:
EFFECTS OF CHANGES IN THE ACCOUNTING STANDARDS ON THE ACCOUNTING AND TAX TREATMENT OF PROVISIONS FOR SEVERANCE PAYMENTS

Authors:
Renata Gabrsek, Slovenia

Abstract:
The change made to the International Accounting Standard 19 "Employee benefits" has influenced the change of the Slovenian Accounting Standard 10 "Provisions". By the end of 2015, companies could use the simplified method of calculating and measuring retirement severance payments. The identified actuarial gains or losses related to severance payments, changes in costs of the past and current employment and interest could immediately be recognised in their income statements. The change in the standard has caused that the companies must now show one part of the formed severance provisions in the income statement and the other part in the comprehensive income. While doing so, they must also determine for the tax purposes the portion of recognised and unrecognised provisions and the resulting deferred taxes.

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