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AS 15

others 1554 views 4 replies

Hi Friends,

could some body tell me about provision of unutilised leaves. the company has very small employee strength and only one employees are there who worked for over a year and rest 7 employees are joined during the current year. company dost't has system of leave encashment.

please suggest provision is required for unutilised leave are not ?

Thanks

R. S Pandey

Replies (4)
Provision has to be made on Balance sheet date.By calculating the Leave encashment payable on such date.
Hi I believe, If the company doesn't have the policy on leave encashment, then there is NO need do the valuation or provision in the books of accounts.
When there is no provision of leave encashment as per terms of emnployment between the employer & employee, there is no question of liability for unutilised leave.
Thank you sir for correcting me


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