Accounting for leave pay means knowing whether it is a short-term or long-term benefit and whether to use IAS 19 or IAS 37. This article explains, in simple terms, how to classify leave, calculate costs for unused leave days, and record the amounts correctly in financial statements. It also provides examples to help business accountants handle both straightforward leave situations and those with uncertain timing or amounts.

This visual offers a streamlined overview of IAS 37 (Provisions) and IAS 19 (Employee Benefits), focusing on key terms such as Onerous Contracts, Constructive Obligations, Employee Benefits, and Post-Employment Benefits. Designed for finance professionals and students, this clear depiction helps users quickly grasp the foundational elements of each standard, enhancing understanding of how provisions and employee benefit obligations are accounted for under IFRS guidelines.