J.E wrt interest cost

Financial Reporting

Timestamp 1:49 Sir, want a clarification wrt interest cost on DBO Whether the interest cost to be Debited to Employee benefit expense or Finance Cost? [Video Time Stamp: 02:52] Video Details ------------- Ind AS - CA Final Ind AS 19 Employee Benefits #39. Accounting Entries for DBO

rashid poonthala

CA Final

★ 31K+

15-Nov-25 15:14

214

Answers (2)

In practice, net interest cost on the net defined benefit liability is recognised as an employee benefit expense, along with service cost. I don't think there is specific guidance in the standard on this.

Siddharth Kulkarni

CA Final

★ 28K+

16-Nov-25 13:42

It's recognised as employee benefit cost.

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CA Suraj Lakhotia

Admin

17-Nov-25 12:29