STATE what would be the treatment of the short-term compensating absences, profit-sharing plan and the defined contribution plan in the books of…

(a) ELTO will recognise a liability in its books to the extent of 5 days of PL for 200 employees and 10 days of PL for remaining 800 employees and 2 days of SL for 200 employees and 5 days of SL for remaining 800 employees in its books as an unused entitlement that has accumulated in 2024-25 as short-term compensated absences. (b) ELTO will recognize 140crores (₹ 4,000 x 3.5%) as a liability and expense in its books of account. (c) When an employee has rendered service to an entity during a period, the entity shall recognise the contribution payable to a defined contribution plan in exchange for that service. Under Ind AS 19, the amount of 160crores will be recognised as a liability (accrued expense), after deducting any contribution already paid (200-40) and an expense in the statement of profit and loss. However, if the contribution already paid would have exceeded the contribution due for service before the end of the reporting period, an entity shall recognise that excess as an asset (prepaid expense). Since the contributions are payable within 12 months from the end of the year in which the employees render the related service, they will not be discounted. However, where contributions to a defined contribution plan do not fall due wholly within twelve months after the end of the period in which the employees render the related service, they shall be discounted using the discount rate.