CSL Ltd is calculating one of its employee benefits liabilities. Justin Lachal is one of the...

 

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CSL Ltd is calculating one of its employee benefits liabilities. Justin Lachal is one of the lab assistants at CSL Ltd head office. As a payroll accountant, you are asked to calculate Justin's employee benefits liability as at 30th June 2021. Additional information: • Years of employment with CSL as at 30/6/2021: 10 years • Current salary as at 30/6/2021: $100,000 • Salary increases are expected to be 2%, in line with inflation. • Justin's long service leave (LSL) entitlement is 13 weeks leave for 15 years of service. However, he is entitled for pro rata payout at 12th year • Given his period of service, there is a 60% likelihood Justin will remain with CSL for next five years. • The opening provision for long service leave in the books of for Justin at the beginning of 1st July 2020 is $6199. The appropriate bond rates from Reserve Bank of Australia (RBA) are: For bonds with a 2-year maturity, the rate is 4%. For bonds with a 5-year maturity, the rate is 5%. Required: Calculate the balances for the employee benefits liabilities (Long service leave) for Justin and provide the journal entry for year ended 30 June 2021. Note: Show all workings. CSL Ltd is calculating one of its employee benefits liabilities. Justin Lachal is one of the lab assistants at CSL Ltd head office. As a payroll accountant, you are asked to calculate Justin's employee benefits liability as at 30th June 2021. Additional information: • Years of employment with CSL as at 30/6/2021: 10 years • Current salary as at 30/6/2021: $100,000 • Salary increases are expected to be 2%, in line with inflation. • Justin's long service leave (LSL) entitlement is 13 weeks leave for 15 years of service. However, he is entitled for pro rata payout at 12th year • Given his period of service, there is a 60% likelihood Justin will remain with CSL for next five years. • The opening provision for long service leave in the books of for Justin at the beginning of 1st July 2020 is $6199. The appropriate bond rates from Reserve Bank of Australia (RBA) are: For bonds with a 2-year maturity, the rate is 4%. For bonds with a 5-year maturity, the rate is 5%. Required: Calculate the balances for the employee benefits liabilities (Long service leave) for Justin and provide the journal entry for year ended 30 June 2021. Note: Show all workings.

Answer rating: 100% (QA)

Date 30062021 Salary CSL Ltd Particuler Inc... View the full answer