Question 1

Under AASB 119,the liability for annual leave is calculated at:

Accepted Answer

A)   the present value of the estimated future cash outflows to be made in respect of the leave
B)   the current pay rate
C)   the anticipated pay rate when the leave is expected to be taken
D)   none of the above

Question 2

AASB 119 specifies that the present value basis of measurement of liabilities arising from employee benefits must be applied to which of the following?

Accepted Answer

A)   Short term employee benefits
B)   Long term employee benefits
C)   Long service leave only
D)   All employee benefits

Question 3

Slater is entitled to 4 weeks annual leave a year and has four weeks leave,to the value of $20 000,accrued at the end of his first year of employment.On the first day of his second year of service Slater is given a pay rise to bring his salary up to $300 000 per annum.After the pay rise,Slater's annual leave payable must be adjusted by:

Accepted Answer

A)   $50 000
B)   $3077
C)   $23 077
D)   No adjustment is necessary

Question 4

Entitlement of equity instruments are based on:

Accepted Answer

A)   Earnings goals
B)   Vesting conditions
C)   Debt ratios
D)   Return on investment ratios

Question 5

In Australia,the attractiveness of salary packaging is being reduced by which of the following factors?

Accepted Answer

A)   Fringe benefits tax which taxes the employer on non-cash benefits paid to the employee
B)   The decreasing difference between personal tax rates and the company tax rate
C)   Non-cash salary being taxable in the hands of the employee
D)   All of the above

Question 6

Leopard Ltd has a defined benefit superannuation plan where the present value of the accrued benefits on 1 January 20X6 was $850 000 and on 31 December 20X6 was $910 000.During 20X6 Leopard Ltd paid $80 000 to the plan.On 1 January 20X6 the net market value of the plans assets was $365 000 and on 31 December 20X6 was $468 000.Under the net-worth method the superannuation expense for the year ended 31 December 20X6 to be shown in Leopard's accounts is:

Accepted Answer

A)   $80 000
B)   $60 000
C)   $37 000
D)   $53 000

Question 7

Wages and salaries can be divided into which two parts?

Accepted Answer

A)   Current and long-term
B)   Monetary and non-monetary
C)   Current and in arrears
D)   Cash and short-term benefits

Question 8

Discuss the rationale for AASB 119 recognising long service leave as a liability during the preconditional period.How would you account for the possibility that an employee may not remain in your employ long enough to collect long service leave.

Accepted Answer

The early years of continuous service pr...

Question 9

Which of the following is not a true statement concerning the accounting for superannuation costs by employers under a defined benefits plan?

Accepted Answer

A)   The intention of the employer is to ensure that the plan can meet its agreed benefits as they fall due
B)   When an employee is paid under the superannuation plan, the payment is treated as an expense
C)   The performance of the plan has a direct effect on the statement of financial position of the employer
D)   All are true statements

Exam 12: Accounting for Employee Benefits

Correct Answer
verified

AASB 119 specifies that the present value basis of measurement of liabilities arising from employee benefits must be applied to which of the following?

Correct Answer
verified

Wages and salaries can be divided into which two parts?

Correct Answer
verified

Under AASB 119,the liability for annual leave is calculated at:

Correct Answer
verified

Discuss the rationale for AASB 119 recognising long service leave as a liability during the preconditional period.How would you account for the possibility that an employee may not remain in your employ long enough to collect long service leave.

Correct Answer
verified
The early years of continuous service pr...
View Answer

Entitlement of equity instruments are based on:

Correct Answer
verified

Which of the following is not a true statement concerning the accounting for superannuation costs by employers under a defined benefits plan?

Correct Answer
verified

In Australia,the attractiveness of salary packaging is being reduced by which of the following factors?

Correct Answer
verified

Correct Answer
verified

Exam 12: Accounting for Employee Benefits

Correct AnswerverifiedShow Answer

AASB 119 specifies that the present value basis of measurement of liabilities arising from employee benefits must be applied to which of the following?

Correct AnswerverifiedShow Answer

Wages and salaries can be divided into which two parts?

Correct AnswerverifiedShow Answer

Under AASB 119,the liability for annual leave is calculated at:

Correct AnswerverifiedShow Answer

Discuss the rationale for AASB 119 recognising long service leave as a liability during the preconditional period.How would you account for the possibility that an employee may not remain in your employ long enough to collect long service leave.

Correct AnswerverifiedThe early years of continuous service pr...View AnswerShow Answer

Entitlement of equity instruments are based on:

Correct AnswerverifiedShow Answer

Which of the following is not a true statement concerning the accounting for superannuation costs by employers under a defined benefits plan?

Correct AnswerverifiedShow Answer

In Australia,the attractiveness of salary packaging is being reduced by which of the following factors?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The early years of continuous service pr...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified