Social Benefits

Governments and public sector entities provide constituents with social benefits, usually in non-exchange transactions. The objective of the project is to identify the circumstances and manner in which expenses and liabilities of certain social benefits of governments arise. The project will also consider how they should be recognized and measured in the financial statements.

Scope

The development of a new standard (or standards) specifying the recognition and measurement of certain social benefits provided to beneficiaries. The standard or standards will cover cash transfers and the provision of social benefits in kind.

Background

For many governments and public sector entities, the provision of social benefits is a highly significant part of their operations. The project aims to determine accounting requirements for these social benefits.

Issues

Issues the project intends to consider include (but are not necessarily limited to):

• Defining social benefits and their sub-categories;

• Determining the conceptual approach or approaches to be applied; and

• For each approach considered:

• Determining when a liability and an expense should be recognized; and

• Measurement of liabilities.