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when would payments made to employees be considered to be an asset

when would payments made to employees be considered to be an asset
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Answer #1

The accounting treatment for the employee benefits must be recognized in the balance sheet of the enterprise. The amount to be recognized as a defined benefit liability should be the net totals of the following amounts:

i. Present Value of the defined benefit obligations at the balance sheet
minus
ii. Any past service cost not yet recognized
minus
iii. Fair Value at the balance sheet date of the plan assets (if any) out of which the obligations are to be settled directly

If the Fair Value of the plan assets is higher than the liability, then it gives rises to the Net Assets.

As per AS 15 in such a situation, the enterprise should measure the resulting asset at the lower of the amount so determined or the present value of any economic benefits available in the form of refunds from the plans or contributions

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