Exam 11: Employee Benefits

The offer to pay termination benefits can no longer be withdrawn when the entity has communicated to affected employees a plan of termination that meets which of the following criteria?

ABC 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. On 31 December 2013 Joan Rivers left the company and was paid out her untaken leave entitlements. Joan had 12 days leave owing at 1 July 2013 and took 4 days leave between 1 July and 31 December 2013. Her salary at the time of her departure was $140 000. There are 260 work days in a year. On 1 July each year all employees receive a 3% wage rise. There are no other wage rises given during the year. The gross entitlement owing to Joan Rivers on 31 December 2013 was:

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

Pirate 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 2013 the balance in the provision for annual leave account was $20 303. Details of each employees leave entitlement at 30 June 2014 are as follows: Employee Salary Days owing @ 1/7/13 Days taken during year Jo Bird \ 65000 17 22 Bill Brown \ 70000 5 12 Ben Fit \ 85000 24 18 Greg Horn \ 62500 3 15 Lou Hamilton \ 90000 9 26 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 2014 is:

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

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

Which of the following do NOT fall within the definition of a termination benefit?

Carpenter Ltd has 6 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 2013 the accumulated untaken leave was 14 days in total. During the year ended 30 June 2014 a total of 50 days sick leave was taken, of which 12 days were unpaid leave. Of the accumulated untaken leave at 30 June 2014 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 2014 is:

Which of the following types of employee benefits are required to be measured at the present value of expected future cash flows?

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