Question 1

The key difference between defined benefit and defined contributions post-employment plans is that:

Accepted Answer

A)  the employee bears the risk in a defined benefit plan, whereas the employer bears the risk in a defined contribution plan. 
B)  the employer bears the risk in a defined benefit plan, whereas the employee bears the risk in a defined contribution plan. 
C)  the fund bears the risk in a defined benefit plan, whereas the employee bears the risk in a defined contribution plan. 
D)  the employer bears the risk in a defined benefit plan, whereas the fund bears the risk in a defined contribution plan. 
A)  the employee bears the risk in a defined benefit plan, whereas the employer bears the risk in a defined contribution plan. 
B)  the employer bears the risk in a defined benefit plan, whereas the employee bears the risk in a defined contribution plan. 
C)  the fund bears the risk in a defined benefit plan, whereas the employee bears the risk in a defined contribution plan. 
D)  the employer bears the risk in a defined benefit plan, whereas the fund bears the risk in a defined contribution plan.

Question 2

Treloar Ltd has 10 employees, who are each paid $750 per week for a 5 day working week. Each employee is entitled to 8 days accumulating non-vesting sick leave per year. At 1 July 2022 the accumulated untaken leave was 16 days in total. During the year ended 30 June 2023 a total of 50 days sick leave was taken, of which 8 days were unpaid leave.
Of the accumulated untaken leave at 30 June 2023 it is estimated that 75% of it will be taken during the following year.
The balance of the provision for sick leave at 30 June 2023 is:

Accepted Answer

A)  $6 300 
B)  $8 100 
C)  $6 075 
D)  Nil, as the leave is non-vesting. 
A)  $6 300 
B)  $8 100 
C)  $6 075 
D)  Nil, as the leave is non-vesting.

Question 3

An enterprise bargaining agreement results from an entity entering into an agreement with:

Accepted Answer

A)  the government. 
B)  its employees. 
C)  the relevant industry body. 
D)  the relevant employee union. 
A)  the government. 
B)  its employees. 
C)  the relevant industry body. 
D)  the relevant employee union.

Question 4

Which of the following does not fall within the definition of a termination benefit?

Accepted Answer

A)  Employee resignation. 
B)  Voluntary redundancy accepted by an employee. 
C)  An entity's decision to termination employment before an employee's normal retirement date. 
D)  An entity's decision to undertake a redundancy program due to restructuring. 
A)  Employee resignation. 
B)  Voluntary redundancy accepted by an employee. 
C)  An entity's decision to termination employment before an employee's normal retirement date. 
D)  An entity's decision to undertake a redundancy program due to restructuring.

Question 5

Salary sacrificing refers to:

Accepted Answer

A)  an employer withholding a portion of an employee's salary or wages for sub-standard performance. 
B)  an employee electing to forego some of their salary or wages in return for other non-cash benefits. 
C)  an employee not receiving a portion of their salary and wages due to the fact that pre-determined performance targets have not been met. 
D)  an employee foregoing some of their wages because leave entitlements such as sick leave have been overdrawn. 
A)  an employer withholding a portion of an employee's salary or wages for sub-standard performance. 
B)  an employee electing to forego some of their salary or wages in return for other non-cash benefits. 
C)  an employee not receiving a portion of their salary and wages due to the fact that pre-determined performance targets have not been met. 
D)  an employee foregoing some of their wages because leave entitlements such as sick leave have been overdrawn.

Question 6

North Quay Ltd employs 8 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. On 31 December 20229 Margie Winton left the company and was paid out her untaken leave entitlements. Margie had 14 days leave owing at 1 July 2022 and took 6 days leave between 1 July and 31 December 2022. Her salary at the time of her departure was $80 000.
There are 260 work days in a year. On 1 July each year all employees receive a 2% wage rise. There are no other wage rises given during the year.
The gross entitlement owing to Margie Winton on 31 December 2022 was:

Accepted Answer

A)  $5 538 
B)  $5 649 
C)  $6 638 
D)  $6 508 
A)  $5 538 
B)  $5 649 
C)  $6 638 
D)  $6 508

Question 7

Which of the following obligations do not arise from past services provided by an employee?

Accepted Answer

A)  Termination benefits. 
B)  Post-employment benefits. 
C)  Short-term compensated absences. 
D)  Other long-term employee benefits. 
A)  Termination benefits. 
B)  Post-employment benefits. 
C)  Short-term compensated absences. 
D)  Other long-term employee benefits.

Question 8

Which of the following types of employee benefits are not covered by AASB 119/IAS 19?

Accepted Answer

A)  Long service leave. 
B)  Wages. 
C)  Share-based payments. 
D)  Annual leave. 
A)  Long service leave. 
B)  Wages. 
C)  Share-based payments. 
D)  Annual leave.

Exam 9: Employee Benefits

The key difference between defined benefit and defined contributions post-employment plans is that:

An enterprise bargaining agreement results from an entity entering into an agreement with:

Which of the following does not fall within the definition of a termination benefit?

Salary sacrificing refers to:

Which of the following obligations do not arise from past services provided by an employee?

Which of the following types of employee benefits are not covered by AASB 119/IAS 19?

Accounting Regulation and the Conceptual Framework

Application of Accounting Theory

Fair Value Measurement

Inventories

Property, Plant and Equipment

Intangible Assets

Impairment of Assets

Provisions, Contingent Liabilities and Contingent Assets

Leases

Financial Instruments

Income Taxes

Share Capital and Reserves

Share Based Payment

Revenue

Presentation of Financial Statements

Statement of Cash Flows

Accounting Policies and Other Disclosures

Earnings Per Share

Operating Segments

Related Party Disclosures

Sustainability and Corporate Social Responsibility Recording

Foreign Currency Transactions and Forward Exchange Contracts

Translation of Foreign Currency Financial Statements

Business Combinations

Consolidation: Controlled Entities

Consolidation: Wholly Owned Entities

Consolidation: Intragroup Transactions

Consolidation: Non-Controlling Interest

Consolidation: Other Issues

Associates and Joint Ventures

Joint Arrangements

Insolvency and Liquidation

Accounting for Mineral Resources

Agriculture

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