Bond Ltd pays bonuses to its staff after year-end, provided profit targets are met and staff remain employed with the company at the time the bonuses are paid. At 30 June 2022 the company determines it has exceeded its profit target for the year, but intends to delay payment until September so that it does not need to record a liability for bonuses payable until it confirms how many staff continue to be employed with the company in September, given there has been significant variation in turnover rates in recent years.

Required 

Advise whether the proposed approach is acceptable.