Which category is included in key management compensation disclosures under IAS 24?

Which category is included in key management compensation disclosures under IAS 24?

• A. Operating lease payments
• B. Short-term employee benefits
• C. Tax expenses
• D. Cash dividends paid

Answer: (B)

Key management personnel compensation disclosures under IAS 24 cover how much the entity pays its key people for their roles. Short-term employee benefits, such as wages, salaries, bonuses that are payable within 12 months, paid leave, and other immediate compensation, are explicitly included in these disclosures. This category reflects the regular remuneration component of KMP remuneration. The other items don’t describe compensation to key management. Operating lease payments relate to lease arrangements, not how management is paid. Tax expenses are taxes the entity incurs, not payments to management. Cash dividends paid are distributions to shareholders, not compensation. So short-term employee benefits is the category that fits the disclosure requirements.

Key management personnel compensation disclosures under IAS 24 cover how much the entity pays its key people for their roles. Short-term employee benefits, such as wages, salaries, bonuses that are payable within 12 months, paid leave, and other immediate compensation, are explicitly included in these disclosures. This category reflects the regular remuneration component of KMP remuneration.

The other items don’t describe compensation to key management. Operating lease payments relate to lease arrangements, not how management is paid. Tax expenses are taxes the entity incurs, not payments to management. Cash dividends paid are distributions to shareholders, not compensation. So short-term employee benefits is the category that fits the disclosure requirements.