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.

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Advise the accountant on whether this approach is acceptable, and what requirements exist under AASB 119/IAS 19.

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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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