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CA Final · Financial Reporting · Ind AS 19 Employee Benefits

An analyst reviewing Ind AS 19 notes the Appendix comparison with IAS 19. Which of the following is a difference that Ind AS 19 retains from IAS 19?

The key difference is the discount rate. Ind AS 19 requires post-employment obligations to be discounted using market yields on government bonds, whereas IAS 19 allows government bonds only for currencies without a deep market in high-quality corporate bonds. The requirements for other currencies are retained with modifications.

  1. AInd AS 19 does not require any discounting of post-employment benefit obligations
  2. BInd AS 19 requires remeasurements of other long-term benefits in OCI, unlike IAS 19
  3. CInd AS 19 requires the discount rate for post-employment obligations to be determined by reference to government bond yields, whereas IAS 19 permits government bonds only where there is no deep market in high-quality corporate bondsCorrect
  4. DInd AS 19 treats all employee benefits as short-term benefits

Explanation

The comparison appendix states that Ind AS 19 uses government bond yields for the discount rate, while IAS 19 permits government bonds only for currencies lacking a deep corporate bond market. Discounting is still required, and the other long-term benefit method does not use OCI remeasurements.

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