Exam 9: Employee Benefits

An entity is required to make several estimates when measuring the liability for long service leave. These estimates include:

Actuarial gains or losses can arise from: I. Experience adjustments. II. Employee services provided in future periods. III. The withdrawal of changes to a defined benefit plan. IV. Changes to actuarial assumptions.

An entity is required to recognise a liability for short-term compensated absences that are:

The key steps involved in accounting by the employer for a defined benefit post-employment fund in accordance with AASB 119 include: I. Determining the deficit or surplus of the fund II. Determining the amount of the net defined benefit liability (asset) III. Determining the amounts to be recognised in profit or loss IV. Determining the remeasurements of the net defined benefit liability (asset) to be recognised in other comprehensive income

When an entity decides to terminate an employee's employment, the offer to pay termination benefits can no longer be withdrawn when the entity has communicated to affected employees a plan of termination that meets which of the following criteria?

Under AASB 119, leave entitlements that may be carried forward to a future financial period if unused are referred to as:

AASB 119 adopts the projected unit credit method for the measurement of long service leave obligations. This method requires the entity to:

An entity is able to record a provision for termination benefits when it:

In the event that an employer pays an amount to the defined contribution fund that is less than the amount payable:

The nominal value of an accumulated benefit for long service leave is calculated as (Years of employment/Years required for LSL) x (weeks of paid leave/52) x _____ __.

Employee benefits can arise from which of the following? I. government legislation. II. specific industry arrangements. III. workplace agreements between an entity and its employees. IV. enterprise bargaining agreements between an entity and the relevant employee union.

Benefits paid to members of a defined benefit post-employment fund are based on: I. investment returns generated by the fund. II. remuneration levels while employed. III. number of years of service. IV. the level of employer contributions made to the fund.

Which of the following types of employee benefits may be conditional upon the continuation of employment?

Primrose Ltd employs 5 staff. Each staff member is entitled to 20 days annual leave per annum. Leave loading of 17.5% is paid when the leave is taken. At 1 July 2022 the balance in the provision for annual leave account was $14 028. Details of each employee's leave entitlement at 30 June 2023 are as follows: Employee Salary Days owing @ 1/7/22 Days taken during year John Adams \ 60000 15 22 Wendy Carter \ 52000 4 20 Ken Murphy \ 70000 20 25 Susan O'Leary \ 58000 2 12 Marcus Thomson \ 80000 6 15 There are 260 work days in a year. On 1 July each year all employees receive a 5% wage rise. There are no other wage rises given during the year. The closing balance in the provision for annual leave account at 30 June 2023 is:

An increase in the present value of a defined benefit obligation resulting from employee service in the current period is referred to as:

Which of the following statements regarding defined contribution plans is incorrect?

AASB 119 requires an entity to record a liability for long service leave:

Primrose Ltd employs 5 staff. Each staff member is entitled to 20 days annual leave per annum. Leave loading of 17.5% is paid when the leave is taken. At 1 July 2022 the balance in the provision for annual leave account was $14 028. Details of each employee's leave entitlement at 30 June 2023 are as follows: Employee Salary Days owing @ 1/7/22 Days taken during year Jahnu Adarns \ 60000 15 22 Wendy Carter \ 52000 4 20 Ken Muphy \ 70000 20 25 Susar1 O'Leary \ 58000 2 12 Marcus Thornson \ 80000 6 15 There are 260 work days in a year. On 1 July each year all employees receive a 5% wage rise. There are no other wage rises given during the year. Annual leave payments made during the year were debited against the provision account. The total debit against the annual leave account during the year in relation to leave taken was:

Which of the following is not an example of a short-term employee benefit?

If the amount paid to the defined contribution fund by an entity during the year is less than the amount payable in relation to service provided by employees, the entity must recognise: