Accounting for Employee Benefits: A Comparative Analysis of IFRS and Other Standards

RUNNING HEAD: ACCOUNTING
Accounting for Employee Benefits

Accounting 2
Executive summary
The report summarizes the overall analysis of the two journal articles based on the topic
accounting for employee benefits. The report started with the brief overview of the topic along
with the introduction of journal articles selected. The second part reflects three reasons for
selecting each article followed by the purpose and research question of each one of them. In the
later part similarities and differences in the findings of both the journals have been explained by
analyzing the facts stated in them. The report also provide insights about the implication of each
study on the Australian accountants, accounting regulators and investors who are an external user
of financial reports, followed by the conclusion in the end.

Accounting 3
Introduction
The report contains an overall study of the two journal articles selected on the topic accounting
for Employee Benefits. International Accounting Standard Board has formulated a standard IAS
19 Employee Benefits which lay down some provisions requirements to be followed while
accounting for all type of employee benefits. The benefits include all type of services that are
provided to the employee in exchange of its services or at time of termination of employment.
There are different types of benefits such as short term and long term benefits, termination
benefits, post employment benefits. As per the standard, the company is require to recognize the
cost of providing employee benefits in the year in which the benefit is earned by the employee1.
The report studies the two journal article based on this topic named as:
 A comparative analysis for the accounting reporting of ‘employee benefits’ between
IFRS and other accounting standards: a case study for the biggest listed entities in
Greece2.
 Discretionary accounting choices: the case of IAS 19 pension accounting3.
Both of the articles are taken from American Journal of Economics and Business Administration
and Accounting and Business Research respectively. The reasons for choosing them, their
purpose and research question, similarities and differences in the finding and their implications
1 IAS, (2018). “IAS 19 – Employee Benefits” [Online]. Available: https://www.iasplus.com/en/standards/ias/ias19
2 K. Liapis and El Thalassinos, “A Comparative Analysis for the Accounting Reporting of “Employee Benefits”
between IFRS and other Accounting Standards: A Case Study for the Biggest Listed Entities in Greece” International
Journal of Economics and Business Administration, Vol. 1, No. 1 (2013), 91-116.
3 M. Glaum, Tobias Keller and Donna L. Street, “Discretionary accounting choices: the case of IAS 19 pension
accounting” Accounting and Business Research, Vol. 48, No. 2 (2017), 139-170.