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..
Gratuity is an expense and subtracted from gross pay. I didn't go through employee benefits in as standards and I'll get back later on when I have time. I have gratuity problems and you can find them online with government compliance.
I mean I have to check out if there is provision created for gratuity
Chirag P Shah & Co. Chartered Accountant
Pune
B.Com
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CCI
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