LSP Genie is a comprehensive solution meticulously designed to streamline the intricate calculations associated with Long Service Payment (LSP) for accurate and compliant accounting treatment. Implemented as a sophisticated web application, this tool adheres to Approach 1 as outlined in the HKICPA’s education guidance published on 4 July 2023. Far surpassing a mere calculator, LSP Genie is engineered to seamlessly handle the complexities inherent in LSP cost and accrual calculations. It effectively integrates all parameters stipulated in the HKICPA’s guidance, while also incorporating flexible algorithms tailored to meet the specific requirements of individual companies.
The abolition of the MPF-LSP offsetting mechanism carries profound accounting implications that can present formidable challenges. While HKAS 19 Employee Benefits provides guidance on the accounting treatment of defined contribution plans and defined benefit plans, it does not offer specific guidance on the intricacies surrounding the interaction between employers’ MPF contributions (which exhibit attributes of a defined contribution plan) and the entity’s LSP obligation (which possesses attributes of a defined benefit plan).
Rather than engaging in protracted exchanges between the accounting department and system developers in search of a solution, entrusting us grants access to a comprehensive and ready-made resolution. With LSP Genie already at your disposal, you can confidently address your concerns without delay.
What Do You Get?
LSP Genie takes in your data and create for you:
Processing for many staffers in one go
Journal entries for current fiscal year costs and accruals- Prior Year Adjustment journal entries
- Reversal entries for next fiscal year
LSP and offsetting amount calculations for individual staffers- LSP liability summary for the whole staff
- LSP expense summary for the whole staff
Email enquiry on the general accounting treatment of MPF-LSP offsetting mechanism
To provide the flexibility to cater certain calculation needs, we provide:
LSP cap and Last full monthly salary cap override
Selection of minimum expected years of service for provision
We provide the following features to make your accounting process easier:
Rigorous input data validation
Computations stored for access at a later date
Easy copying of data to Clipboard/Excel
Removal of sensitive information from our server
All these will be necessary for you to satisfy the accounting requirements and the auditing of the LSP calculations. See our sample computation to learn more.