IAS19 on Long-term benefits

[mourits]

Hello guys....
I have a case where I'd like to get everyone's opinion on.
A company provides long-term service rewards, whereby after completion of 5 years of service (resignation/retirement need not occur) an employee is rewarded 5 times his/her salary. And it goes on for every 5 years of service completed. Let's say, my employee has completed his/her 2nd year of employment.
My question is, under IAS19, how should we calculate the costs/liability?

- Should we calculate the PV of the benefits due in 3 years' time only? This implies that the costs/liability for service beyond the first 5 years will be calculated starting from the 6th year of service.

OR

- Should we now take into account the benefits for services beyond the first 5 years, that is, we also calculate the liability for leng service rewards for the 10th year, 15 year, etc....


Your comments will be greatly appreciated...

Thanks,
M

[sadaf]

Hi
As far as IAS concern u need to just concern for upcomming 5 yrs not the period that is not forseable so if 3 yrs passed you need to book a iability for 3 yrs

Regards
Sadaf