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Saturday, April 24, 2010

Termination benefits

Termination benefits are employee benefits payable as a result of either:

  1. an entity’s decision to terminate an employee’s employment before the normal retirement date; or
  2. an employee’s decision to accept voluntary redundancy in exchange for those benefits.

Termination benefits are specifically discussed in IAS 19 Employee Benefits.

Source: Glossary of Terms of IFRSs as at 31 December 2008.