Which of the following accurately describes the accounting treatment of
employee benefits under Accounting Standards Codification
(ASC 715/IAS 19) ?
A) Employee benefits are expensed as they are paid out to employees.
B) Employee benefits are recognized as a liability on the balance sheet and
are expensed over the employees' service period.
C) Employee benefits are only disclosed in the footnotes of financial
statements and do not impact the balance sheet or income statement.
D) Employee benefits are recognized as revenue when earned by
employees and are expensed when paid out.