IASB 39 Standard

This standard determines the accounting treatment of employee benefits for private companies, associations and non-profit organizations.
The standard replaces Statement of Opinion No. 19 and Statement of Opinion No. 20 and determines the accounting treatment and reporting rules regarding employee entitlement to vacation, severance payment, retirement payment, and post-retirement benefits.
The standard was applied to the financial statements for annual periods starting January 1, 2018.

The difference in relation to the international standard IAS 19

This standard is largely based on the international standard IAS 19, which has several points that differ in relation to the requirements of the international standard and also includes several different recognition methods for some of the employer's obligations.

The standard handles four types of employee benefits:

• Short-term employee benefits (such as salary, national insurance, social security, vacation, sickness, non-monetary benefits), do not require actuarial apraisal.

• Benefits after termination of employment including benefits for retirement compensation (severance pay, pensions, medical treatment after termination of employment)

• Other long-term employee benefits (benefit payments that will not be settled within 12 months from the balance sheet date)

• Excess benefits for termination of employment under special circumstances (special benefits that are part of recovery plans or retirement incentives)