26. Which of the following obligations do NOT arise from

Question :   26. Which of the following obligations do NOT arise from : 2102200


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

a. short-term compensated absences

b. termination benefits

c. other long-term employee benefits

d. post-employment benefits

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

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

28. 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:

a. $17 715

b. $9692

c. $5061

d. $11 388

29. 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:

a. $1350

b. $3600

c. $2700

d. NIL, as the leave is non-vesting

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

a. annual leave

b. accumulating non-vesting sick leave

c. maternity leave

d. long service leave



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