accrued employee compensation

Discussion in 'Growing and Managing a Business' started by negina, Dec 12, 2012.

  1. negina

    negina
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    Hi everyone,
    What does the accrued employee compensation included in the current liabilities field in a company's balance sheet mean?
    How is it related to the actual amount paid to the employees in salaries?
    Which form provides the information about the Salaries and Benefits?
    Is it the information that open joint-stock companies must provide? If yes, are there any ways to escape that?
    I don't know much about accounting, and your comments will be greatly appreciated!
     
  2. Fergal

    Fergal
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    Welcome to Business Advice Forum Negina and thanks for posting your business questions.

    This would be money that is owed to the employees of the business, but that has not been paid yet. It is shown as a liability because it is money that the business owes and must eventually pay.

    That would really depend on the individual company and their policies in relation to salaries and bonuses etc. Some companies may pay everything owed every week and hence not have any salary or benefit accruals on their book. Another company might wait some time before paying bonuses for example and hence show a high level of accruals.

    The best way to find that information would be by looking at the contracts of employment that the company has with it's employees. If that information is not available to you, you might want to take a look at the most recently available full set of accounts for the company in question.

    I'm sorry I can't help you with that one, but another member might be able to help if you can please tell us which country or state the business is based in.
     
  3. negina

    negina
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    Hi Fergal
    Thank you very much for the detailed answer.
    I'm conducting a small research, and I wanted to find out what amount a certain US-based company pays to its employees. However, they don't provide this information in their financial reports, in the 10-K report, in particular.
    But another US company does specify this amount in their 10-K report in the Salary and Benefits paragraph.
     

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