Exam 9: Employee Benefits

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:

Determining an entity's liability for long service leave requires estimation of:

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

AASB 119 adopts which method to determining long service leave obligations?

AASB 119 does NOT prescribe the accounting treatment for:

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 _______.

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 employee's leave entitlement at 30 June 2014 are as follows: 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:

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 employee's leave entitlement at 30 June 2014 are as follows: 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 obligations do NOT arise from past services provided by an employee?

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

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

Which of the following types of employee benefits are required to be measured at their Nominal value?

AASB 119 requires short-term employee benefits to be measured at:

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

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

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:

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:

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

Salary sacrificing refers to:

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