Actual Employee Benefits Practices vis--vis

PAS19

Liston, Rusty Art C.

Mendoza, Ernest Jan P.
Pantino, Laarnie P.

RATIONALE
Employee Benefits are indirect and non-cash compensation paid to
an employee. Some benefits are mandated by law , others vary from firm to firm
or industry to industry. In general, these are considered as all forms of
considerations given by an entity in exchange for services rendered by
employees (Valix et. al, 2012).
According to Abraham Lincoln, labor is prior, and independent of, to
capital. Capital is only the fruit of labor, and could never have existed if labor had
not first existed. Labor is superior to capital, and deserves much the higher
consideration. Thus, an individual who exerted efforts and offers various kinds of
services deserves to be compensated accordingly and worthy to be protected by
Philippine laws.
Administrative Order No. 296, series of 2003 and Department Order No.57
2004 provides the Manual on Labor Standards which refers the minimum
requirements that an employer shall provide to the workers pursuant to
provisions of the Labor Code of the Philippines, as amended. This mandated law
will serve as the protection for considerations that an individual worker must
receive in accordance with the labor he is rendering.
Overall, the purpose of this study is to know if selected publicly-listed
entities ensure the compliance with the standard and if it provides economic
security to the workers. This study will try to compare the activities applied in
actual practice and if it relates to the accounting standard which is the PAS19:
Employee Benefits.

STATEMENT OF THE PROBLEM

General Objective:
This study will determine the application of Employee Benefits in selected
publicly-listed entities in the Philippines, in order to know the difference between
the application of Employee Benefits in actual practices and in compliance with
PAS 19: Employee Benefits.
Specific Objectives:
Specifically, this study will seek the following objectives:
1. To determine the different forms of consideration established by Law and
other consideration given by the entity.
2. To determine the accounting practice of selected publicly-listed entities in
terms of:
3.1 Accounting Treatment;
3.2 Presentation Approach; and
3.3 Disclosure for employee benefits.

CONCEPTUAL FRAMEWORK
Independent Variable

Dependent

Variable

Practices in compliance

Actual Employee Benefit

with Philippine Accounting

Practices

Standards 19 (PAS 19)

SIGNIFICANCE OF THE STUDY

The study of the determinants of Employee Benefits practices will help the
selected publicly listed companies in the Philippines in the proper recording of its
different accounts. Furthermore, this study is also beneficial to the following:
Employees. To help them understand the different factors affecting the benefits
they are acquiring.
Students. To help them distinguish the difference of the theoretical practice
and actual practices in applying Employee Benefits in the different sectors of
publicly listed companies.
Future Researchers. This will serve as their reference for future related studies
regarding the practice of Employee Benefits.

METHODOLOGY
Research design
This study will use the descriptive research design and will use qualitative
documented analysis.
Duration
This study will be commencing from December 2013 and will end February
2014.

Endorsed by:

Normelita De Gracia, CPA, MSA

CPA, MSA
Thesis Adviser

Reviewed by:

William T. Sucuahi,
Professor

Approved by:

Esterlina B. Gevera, CPA, MBA

Dean, College of Accounting Education