Everglades Ltd provides its workforce of 90 employees with 15 days paid sick leave each year....
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Everglades Ltd provides its workforce of 90 employees with 15 days paid sick leave each year. For 30 of Everglade's employees, the sick leave is vesting and for the remaining 60 employees it is non-vesting and cumulative. The following information is available in relation to sick leave for Everglade for the year ended 30 June, 2021. For the 30 employees with vesting sick leave, the amount ofunused sick leave entitlements totals $9,500 and the weekly payroll for these 30 employees is $364,000. For the 60 employees with non-vesting, cumulative sick leave from past experience Everglades expects that: 50% will take their full sick leave, 40% will take 10 days of sick leave and 10% will take no sick leave. The weekly payroll for these 60 employees is $900,000. REQUIRED: What is the balance of the provision for sick leave reported in Everglades Ltd's Balance Sheet as at 30 June 2021 in accordance with the requirements of AASB 119 Employee ww Benefits'? PART B (Total: 4 marks) Coothara Ltd reports the following in relation to its employees' post-employment benefits in the notes to its financial statements. This disclosure complies with the requirements of AASB 119 Employee benefits. 2021 2020 SM $M Present value of funded obligations (4,890) (5, 120) Fair value of plan assets 4.234 4.580 Net superannuation plan assets (liabilities) as at 30 June (656) (540) REQUIRED: From this disclosure what type of superannuation plan does Coothara Ltd contribute to on behalf of its employees (i.e. a defined contribution plan or a defined benefit plan)? Justify your answer. Everglades Ltd provides its workforce of 90 employees with 15 days paid sick leave each year. For 30 of Everglade's employees, the sick leave is vesting and for the remaining 60 employees it is non-vesting and cumulative. The following information is available in relation to sick leave for Everglade for the year ended 30 June, 2021. For the 30 employees with vesting sick leave, the amount ofunused sick leave entitlements totals $9,500 and the weekly payroll for these 30 employees is $364,000. For the 60 employees with non-vesting, cumulative sick leave from past experience Everglades expects that: 50% will take their full sick leave, 40% will take 10 days of sick leave and 10% will take no sick leave. The weekly payroll for these 60 employees is $900,000. REQUIRED: What is the balance of the provision for sick leave reported in Everglades Ltd's Balance Sheet as at 30 June 2021 in accordance with the requirements of AASB 119 Employee ww Benefits'? PART B (Total: 4 marks) Coothara Ltd reports the following in relation to its employees' post-employment benefits in the notes to its financial statements. This disclosure complies with the requirements of AASB 119 Employee benefits. 2021 2020 SM $M Present value of funded obligations (4,890) (5, 120) Fair value of plan assets 4.234 4.580 Net superannuation plan assets (liabilities) as at 30 June (656) (540) REQUIRED: From this disclosure what type of superannuation plan does Coothara Ltd contribute to on behalf of its employees (i.e. a defined contribution plan or a defined benefit plan)? Justify your answer.
Expert Answer:
Answer rating: 100% (QA)
PART A PART B Defined contribution PlanDCB DCB is a postemployment benefit plan under which an entit... View the full answer
Related Book For
Personal Finance
ISBN: 978-0077861643
11th edition
Authors: Jack Kapoor, Les Dlabay, Robert J. Hughes
Posted Date:
Students also viewed these accounting questions
-
Following information is available in respect of a company named, as Beta Ltd Particulars Amount Profit before taxes Rs 50 lakhs Dividend declared per share Rs2 Price of the share prevalent on stock...
-
The average number of sick leave days used per employee per year in Bygones, Nebraska, is 6.7. The Normal city manager feels the Public Works Department is abusing its sick leave privileges. The...
-
The balance sheet for Fogelberg Company reports the following information on July 1, 2014. Fogelberg decides to redeem these bonds at 102 after paying annual interest. Prepare the journal entry to...
-
As the Developing market of Southern Africa there is endless growth opportunities and constant ask for high growth pushed by the business, this growth comes normally in a very erratic way but as...
-
Geolander manufactures tires for all-terrain vehicles. Geolander uses job costing and has a perpetual inventory system. On September 22, Geolander received an order for 100 TX tires from ATV...
-
Assuming that data can be copied to and from main memory in a single CPU cycle, how many cycles are required to add the contents of memory addresses 5 and 6 and then store the result in memory...
-
What is a preference share and why might a company favour this form of finance?
-
At the beginning of the year, Goren Company had total assets of $800,000 and total liabilities of $500,000. (Treat each item independently.) (a) If total assets increased $150,000 during the year and...
-
We normally think of fixed costs leading to higher leverage.High fixed operating costs lead to high operating leverage, and high fixed financing costs (interest) leads to high financial leverage.Is...
-
For each of the following scenarios, indicate which of the four basic tax planning variables (entity, character, time period, jurisdiction) impacts after-tax value. Note that more than one variable...
-
You are considering the purchase of a home that would require a mortgage of $184,000. How much more in total interest will you pay if you select a 30-year mortgage at 7.35% rather than a 15-year...
-
A 0.00290 kg air-inflated balloon is given an excess negative charge q = -3.00 x 10-8 C by rubbing it with a blanket. It is found that a charged rod can be held above the balloon at a distance of d =...
-
Sets: Given A = { 4, 5, 6, 8} and B = {8, 6, 5} Relations R, S, and T from set A to set B are defined by R = {(4, 8), (4, 6), (4, 5)} S = {(4, 8), (5, 8), (6, 8), (8, 8)} T= {(5, 5), (6, 6), (8,8)}...
-
Which numbers are elements of the following set? {x Z+ 1-2 x 3} [] T L M D -2 -1 0 1 N 11 52
-
A laser beam propagating in air impinges normally on the surface of homogeneous transparent dielectric. The incident power of the beam is 1 W, and 160 mW is reflected back from the surface. The...
-
Part A. Break-even Analysis Part B. Budgets Utility Total Month January Case Productic Cost Finished Goods Inventory 500 $ 600.00 February 800 $ 660.00 March 1,200 $ 740.00 April 1,100 $ 720.00 May...
-
You are conducting a study to measure the average time spent studying per week by college students. You know the population distribution of study times is heavily skewed to the right (meaning most...
-
Cornell and Roberts are partners who agree to admit Stanley to their partnership. Cornell has a capital balance of $80,000 and Roberts has a capital balance of $120,000. Cornell and Roberts share net...
-
What is the difference among Class A, B, and C shares?
-
What is medigap insurance?
-
How much should Audra charge for monthly rent to cover her costs? Audra owns a rental house. She makes mortgage payments of $600 per month, which include insurance, and pays $1,800 per year in...
-
Taylor Company reports free cash flow of \(\$ 15,000\), total cash of \(\$ 18,000\), net income of \(\$ 50,000\), current assets of \(\$ 90,000\), average current liabilities of \(\$ 38,400\), and...
-
Which of the following is not a cash equivalent? a. Short-term U.S. Treasury bill b. Short-term certificate of deposit c. Money-market account d. IBM common stock
-
Smith \& Sons reports interest expense of \(\$ 90,000\) on its income statement. The beginning and ending balances for interest payable reported on its balance sheet are \(\$ 15,000\) and \(\$...
Study smarter with the SolutionInn App