The accountant of Oxford Ltd believes that long service leave should not be considered as a liability
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The accountant of Oxford Ltd believes that long service leave should not be considered as a liability in the accounts until employees have commenced their tenth year of service, given this leave entitlement only applies to Oxford Ltd employees after 10 years of continuous service.
Required
Advise the accountant on whether this approach is acceptable, and what requirements exist under AASB 119/IAS 19.
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Related Book For
Financial Reporting
ISBN: 9780730396413
4th Edition
Authors: Janice Loftus, Ken Leo, Sorin Daniliuc, Belinda Luke, Hong Nee Ang, Mike Bradbury, Dean Hanlon, Noel Boys, Karyn Byrnes
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