MZUMBE UNIVERSITY

SCHOOL OF BUSINESS
(SOB)

COURSE: BAF BS
TASK: INDIVIDUAL ASSIGNMENT
SUBJECT: FINANCIAL ACCOUNTING
CODE: ACC 121
LECTURE: Dr Nsubili Isaga Mwalukasa
PARTICIPANT REG NO
DOMINICK .P. KIVUYO 12301168/T.19

question interview one entrepreneur surrounding mzumbe university and get information about the
employee benefits available to that business owned/managed. Compare the benefits as stated in IAS
INTRODUCTION

EMPLOYMENT BENEFITS

An employment benefit includes various types of non wages or salaries compensations provided to
employees in additions to their normal wages or salaries. These are the perks offered to employees in
addition to salary , the most common benefits are medical, disabilityand life insurance, retirement
benefits, paid time off, and other employees benefits The purpose of employees benefits is to increase the
economic security of staff members, and in doing so, improve woerker retention across the organization.
As it is one component of reward management.

ACCORDING TO INTERNATIONAL ACCOUNTING STANDARDS (ISA 19)

These are the benefits which are payable within twelve months period from the end of the year in which
employee has provided the services such as salaries, wages, compensated annul leaves, annual profit
shares and bonusesEmployment benefits are all forms of consideration which are transferred to employee
in return for their services. There are about for categories of employee benefits as provided under IAS 19
which are

Short Term Employee Benefits

These are the benefits which are payable within twelve months period from the end of the year in which
employee has provided the services such as salaries, wages, compensated annul leaves, annual profit
shares and bonuses

Post-Employment Benefits

These are the benefits which are payable after the formal retirement of an employee e.g. pension, post
employment medical care facility and insurance benefits, other retirement benefits. These may be in form
of

 Defined Contribution Plan

 Defined Benefits Plan

Other Long Term Employee Benefits

These are the benefits (other than the termination benefits) which are payable after 12 months from the
end of year in which employee has provided the services e.g. sabbatical leave and long term services
awards.

These may be in form of defined contribution plans or defined contribution plans. The entity will classify
the other long term employee benefits plans as defined contribution plans or defined benefits plans in
accordance with the term of the plan and.

Termination Benefits
These are the benefits which are payable as the result of termination of employee employment either
because of

 Entity decision to terminate the employee or

 Employee own decision to accept termination in return of certain benefits

BUSINESS DESCRIPTION

This paragraph tries to analyze the description of the enterprises where the research/observation was
conducted. The observation was about to evaluate and determine the employment benefits available to
small business enterprises located near Mzumbe University.

The observation was done at MAMA WAWILI DELICIOUS AND FAST FOOD CENTER located at
uswazi ya chini near Mzumbe University and the following is the short description of the enterprise

Name of the Enterprises MAMA WAWILI DELICIOUS AND FAST FOOD CENTER

Started time middle of 2019

Number of Employees 5

Services Offered Food Offer Services

Food Package and Delivery Services

Soft Drinks & Fruits Juice services

FINDINGS

During my observation at Mama Wawili delicious and Fast Food Center, I was able to find out the
employment benefits available to the employees at that center. The following are the explanation on the
employment benefits provided by Mama Wawili Delicious and Fast Food Center to its employees

 Meal Allowance

One among the employment benefits provided by the enterprise/center to its employees is meal allowance,
where by the employee gets meal/food during when they are at work place

 Transport Allowance

Another employment benefits offered by the an center is transport allowance mostly to its
employees who lives far away from the workplace area in which they are given transport fee to
enable them to attend at the work very early without delaying

CONCLUSION ON FINDINGS

Basing on the information obtained from the observation and by comparing the International
Accounting Standard (IAS 19), I was able to conclude on the employments benefits offered by
 MAMA WAWILI DELICIOUS &FAST FOOD CENTER and the employment benefits which are
not provided at the center to its employees but outlined in the IAS 19.

The Business is only able to offer not all the employment benefits available as provided under
IAS 19 but some of the Short Term Employment Benefits such as meal allowance, and transport
allowance, this is due to the following reason as given by the owner of the center

 Small size of the business

 Limitation on the Capital to run the business
 Uncertainty of the business
 And the environment conditions of the business
 Low profit margin

RECOMMENDATIONS

By considering the project finding the following are my points of view that I can comment the
issue by following the information available

Firstly, I can comment that firms or entity need to understand better the whole concept of IAS 19
especially at the point of recognitions and measurement of employment benefits in accounting
treatment

Secondly, entity needs to have consistency in providing the employment benefits by considering
the size of the entity and the type of its employees together with the environment condition

Lastly, employments benefits has to be offered basing on the nature and type of employment