Gratuity Trust and accounting

Rakeshwar Nath Mishra (Finance Professional) (27 Points)

05 May 2023  

Hi,

Can some one explain the correct accounting of Gratuity, if Company has a gratuity trust and Company has shared funds in Bulk to an insurance company, which has partly invested the funds in income earning investments and partly has kept funds to pay the gratuity liability arising in the company due to resignation/separation of employees.

Company also goes for annual valuation of gratuity fund through actuary..