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

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

Accepted Answer

A)  wages and salaries 
B)  termination payments 
C)  bonuses and profit-sharing arrangements 
D)  short-term compensated benefits 
A)  wages and salaries 
B)  termination payments 
C)  bonuses and profit-sharing arrangements 
D)  short-term compensated benefits

Question 3

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

Accepted Answer

A)  has a detailed formal plan 
B)  has a definite intention of terminating employment 
C)  has received Board approval for the termination benefits 
D)  can no longer withdraw the offer of the benefits 
A)  has a detailed formal plan 
B)  has a definite intention of terminating employment 
C)  has received Board approval for the termination benefits 
D)  can no longer withdraw the offer of the benefits

Question 4

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 2016 Joan Rivers left the company and was paid out her untaken leave entitlements. Joan had 12 days leave owing at 1 July 2016 and took 4 days leave between 1 July and 31 December 2016. 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 2016 was:

Accepted Answer

A)  $17 715 
B)  $9692 
C)  $5061 
D)  $11 388 
A)  $17 715 
B)  $9692 
C)  $5061 
D)  $11 388

Question 5

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

Accepted Answer

A)  employee resignation 
B)  voluntary redundancy accepted by an employee 
C)  termination of employment before the normal retirement date due to company insolvency 
D)  termination of employment before the normal retirement date due to poor performance 
A)  employee resignation 
B)  voluntary redundancy accepted by an employee 
C)  termination of employment before the normal retirement date due to company insolvency 
D)  termination of employment before the normal retirement date due to poor performance

Question 6

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

Accepted Answer

A)  short-term compensated absences 
B)  termination benefits 
C)  other long-term employee benefits 
D)  post-employment benefits 
A)  short-term compensated absences 
B)  termination benefits 
C)  other long-term employee benefits 
D)  post-employment benefits

Question 7

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

Accepted Answer

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

Question 8

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 2016 the accumulated untaken leave was 14 days in total. During the year ended 30 June 2017 a total of 50 days sick leave was taken, of which 12 days were unpaid leave.
Of the accumulated untaken leave at 30 June 2017 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 2017 is:

Accepted Answer

A)  $1350 
B)  $3600 
C)  $2700 
D)  NIL, as the leave is non-vesting 
A)  $1350 
B)  $3600 
C)  $2700 
D)  NIL, as the leave is non-vesting

Question 9

IAS 19 defines employee benefits as:

Accepted Answer

A)  any cash consideration given by an entity to employees or their authorised representatives in exchange for services rendered by the employee 
B)  all forms of consideration given by an entity to employees or their authorised representatives in exchange for services rendered by the employee 
C)  all forms of consideration given by an entity in exchange for service rendered by employees 
D)  all forms of consideration given by an entity to employees or their authorised representatives 
A)  any cash consideration given by an entity to employees or their authorised representatives in exchange for services rendered by the employee 
B)  all forms of consideration given by an entity to employees or their authorised representatives in exchange for services rendered by the employee 
C)  all forms of consideration given by an entity in exchange for service rendered by employees 
D)  all forms of consideration given by an entity to employees or their authorised representatives

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

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

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

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

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

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

IAS 19 defines employee benefits as:

The Iasb and Its Conceptual Framework

Owners Equity: Share Capital and Reserves

Fair Value Measurement

Revenue From Contracts With Customers

Provisions, Contingent Liabilities and Contingent Assets

Financial Instruments

Share-Based Payment

Inventories

Leases

Impairment of Assets

Financial Statement Presentation

Statement of Cash Flows

Operating Segments

Other Key Notes Disclosures

Consolidation: Controlled Entities

Consolidation: Wholly Owned Subsidiaries

Consolidation: Intragroup Transactions

Translation of the Financial Statements of Foreign Entities

Agriculture

Associates and Joint Ventures

Joint Arrangements

Revenue From Contracts With Customers

Financial Instruments

Financial Instruments

Share-Based Payment

Exploration for and Evaluation of Mineral Resources

Filters

Exam 9: Employee Benefits

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

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

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

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

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

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

IAS 19 defines employee benefits as:

The Iasb and Its Conceptual Framework

Owners Equity: Share Capital and Reserves

Fair Value Measurement

Revenue From Contracts With Customers

Provisions, Contingent Liabilities and Contingent Assets

Financial Instruments

Share-Based Payment

Inventories

Leases

Impairment of Assets

Financial Statement Presentation

Statement of Cash Flows

Operating Segments

Other Key Notes Disclosures

Consolidation: Controlled Entities

Consolidation: Wholly Owned Subsidiaries

Consolidation: Intragroup Transactions

Translation of the Financial Statements of Foreign Entities

Agriculture

Associates and Joint Ventures

Joint Arrangements

Revenue From Contracts With Customers

Financial Instruments

Financial Instruments

Share-Based Payment

Exploration for and Evaluation of Mineral Resources

Filters