Incentive/bonus expenses for employees
All forms of consideration given by an entity in exchange for services rendered by an employee, including any bonuses and incentives such as performance-related consideration, contract signing fees, and loyalty incentives, must be reported as employee benefit expenses.
Bonus and/or incentive payments that are payable in full by the club to a person with no further condition or service obligation (i.e. the club has no choice but to make the payments) must be recognised as employee benefit expenses when triggered.
Bonus and/or incentive payments that are dependent on a certain future condition being satisfied by the player and/or the club, such as a player’s participation in matches and/or the club’s competition performance, must be recognised as employee benefit expenses at the point in time when the condition has been satisfied or its fulfilment becomes highly probable.
Incentive and/or bonus to players when entering and/or extending an employment agreement with any condition or service obligation must be recognised on a systematic basis over the relevant period.
Termination benefits to employees
A club must recognise in full the expense of termination benefits to an employee when the club can no longer withdraw the offer of those benefits.