Employee Benefits and AASB119 Compliance for Woolworths Group

This presentation examines the employee benefits provided by Woolworths Group, Australia's second-largest retail chain. It identifies various forms of benefits, including compensation, medical aid, pension, and leaves. The analysis highlights which benefits require discounting according to Australian Accounting Standard Board (AASB) 119, focusing on post-employment and long-term benefits. The presentation also assesses Woolworths' compliance with AASB119, emphasizing its commitment to employee welfare through its corporate social responsibility structure. The report uses Woolworths Group's 2018 Annual Report and relevant academic sources to support its findings, offering insights into the company's financial reporting practices concerning employee benefits.

Advanced Corporate Accounting

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
Employee benefits and various forms in which these benefits are applicable in Woolworth
group............................................................................................................................................1
Employee benefits which needs to discounted in accordance with AASB119...........................2
Compliance with AASB119........................................................................................................2
CONCLUSION................................................................................................................................3
REFERENCES................................................................................................................................4

INTRODUCTION
Advanced corporate accounting is branch which is implied general accounting principle
which helps company in managing stability in business functions. Employee benefits is part of
Advanced corporate accounting and therefore the presentation will outline benefits of providing
advantages to workers of Woolsworth Group. Woolsworth Group is second largest retail chain of
Australia and serving millions of buyers every day. The assessment will outline employee
benefits which needs to be discounted with Accounting Standard AASB 119 employee benefits.
MAIN BODY
Employee benefits and various forms in which these benefits are applicable in Woolworth group
Employees benefits are crucial part of business where the focus of management is on
providing advantages in kind which comprise compensation, medical aid, pension, transportation
services, gratuity, sick leaves, life insurance, etc. Corporate social responsibility enables strict
structure to business for setting employee benefits with the help of which the management is able
to segregate welfare plans comprise short and long term benefits and post-employment plans
(Guthrie, Evans and Burritt, 2014). The welfare plans help the workers in developing trust over
organisational changes and functions. It is management by firm for employee retention and
building long term relationship with staff.
This assist firm in gaining employees loyalty and increasing their working experience
with organisation. Woolsworth is focused on welfare of its workforce which is denoted by its
current and non-current provision. On the basis of current employee benefits provision account,
the amount has increased from 2017 to 2018 that is from 915 million $ to 1018 million $.
Moreover, the firm provides accruing annual leaves and long service leave to its every worker.
Likewise, the value of employee welfare is on the basis of individual wages and salary which
keeps on increasing and decreasing according to performance.
Employee benefits which needs to discounted in accordance with AASB119
As per Australian Accounting Standard Board, it is the liability of firm to launch benefits
to employees for the services which the individuals are giving to firm. The board states about
welfare where it is the responsibility of an enterprise to pay workforce a charge which is
consumed by entity from economic benefit that is generated from services provided workers
(Islam and et.al., 2017). Discounting employee’s benefits derives present value of current service
cost. As per AASB discounting employee benefits is necessary because it helps in deriving fair
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values of assets. Discounts rate refers to time value of money but not investment risk and
actuarial.
In accordance with Australian Accounting Standard Board two employee benefits are
given discount that is post-employment and long term like, dividend, gratuity, pension, etc.
(Woolworths Group: Annual report, 2018) The rate used to discount post-employment advantage
obligations (both funded and unfunded) shall be implied with regard to market yields at the end
of reporting period. As per discount rate by AASB119, it can be said that it does not reflect credit
risk of specific enterprise.
Compliance with AASB119
Structure of corporate social responsibility of Woolworths denotes its responsibility for
compliance with AASB 119. CSR structure of company is focused on providing employee
welfare and therefore the retailer has complied with Australian accounting standard Board which
helps the business in managing balance between earnings benefits to employee. Woolworth has
complied with AASB119 because it assists the firm in gaining employees trust towards welfare
plans and schemes (AASB Standard: Employee Benefits, 2018). On the basis of discounted rate
of Board, the retailer sets welfare plans for workers where post-employment and long term
welfare schemes are offered according to current market and economic conditions.
The firm has complied with standard board because it helps the accounting management
in balancing current earning and employee’s welfare. Share rights are approved in total fair value
of share rights which are granted during the financial year determined by an autonomous actuary
which is recognised in employee benefits expense over vesting time span as per Australian
Accounting Standards. Hence, compliance with compliance with AASB 119 is mandatory as it
helps board and government in monitoring and controlling organisational activities.
CONCLUSION
The presentation summarized about employees benefits which are provided by organisation
to protect workers interest with firm. Some benefits which are encouraged Woolsworth, the
second largest supermarket chain of Australia are annual leaves, long service leave, medical aid,
pension, etc. It outlined welfare schemes which needs to be discounted according to Australian
accounting standard Board that is long term and post-employment benefits. It concluded by
deriving compliance of retailer with standards of AASB119.
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REFERENCES
Books and Journals
Guthrie, J., Evans, E., & Burritt, R. (2014). Australian accounting academics: challenges and
possibilities. Meditari Accountancy Research.22(1). 20-37.
Islam, J., Khan, H. Z., Hughes, M., & Ali, M. (2017). Politicisation of the accounting standard-
setting process and the influence of key-players: An investigation into the withdrawal of
the mandatory status of the Statement of Accounting Concepts No. 4 (SAC 4) in
Australia. Accounting History, 1032373217733811.
Online
AASB Standard: Employee Benefits. 2018. [Online]. Available through: <
file:///C:/Users/user/AppData/Local/Temp/Rar$DIa0.937/AASB119_09-
111539482080.pdf>.
Woolworths Group: Annual report. 2018. [Online]. Available through: <
file:///C:/Users/user/AppData/Local/Temp/Rar$DIa0.764/Woolworthreport1
539482080.pdf>.
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