Gratuity provision

IFRS 303 views 1 replies

Somesh Aradhyula

23 Points Joined September 2015

Respected Forum,

Our company is making payment to X (IRDA controlled) for the gratuity on yearly basis, in that scenario do we need to make a provision for gratuity, in our yearly balance-sheet. Question arised as we are making the payment, hence is liability required.

Somesh

Regards And Thanks In Advance

Replies (1)

V P Narasimhan

Accounts Manager

793 Points Joined November 2008

Gratuity A/c Dr

To Gratuity Payable A/c Cr.

Note: If the amount is being paid by the 3rd party for which you are making reimbursement treat them as Creditor & square off at the time of making payment.