QUESTION 1 (25 marks) Techno World (Pty) Ltd is a company that deals in computers and related products. The company has a 31 December year-end. Annual leave The company employs 330 employees, each entitled to 15 days of paid annual leave per year. Employees are allowed to carry forward unused leave for one year. Annual leave is first taken out of the current years leave entitlement and then out of the previous years carry-forward leave entitlement.

On 31 December 2022, the following information regarding the annual leave is available: The average unused annual leave entitlement per employee was three days. Based on past experience, management expects that 70% of the employees will not take more than 15 days of annual leave during the 2023 financial year. Based on past experience, management expects the remaining 30% of the employees to take 17 days of annual leave during the 2023 financial year. The average salary rate per employee per day is R550.

Pension fund contributions All Techno World (Pty) Ltds permanent employees are members of a pension fund. The pension fund is a defined contribution plan. Techno World (Pty) Ltd has grown significantly over the last couple of years, and as a reward to all its loyal employees, management pledged to make three annual payments of R250 000 to the employees pension fund. The first of these special contributions was made during the 2022 financial year.

REQUIRED: 1.1 With reference to the requirements of IAS 19, discuss and calculate the amount, if any, that Techno World (Pty) Ltd should provide for the unused annual leave at year-end, 31 December 2022. Your discussion needs to include classifica-tion, recognition and measurement. (17 marks) 1.2 With reference to the requirements of IAS 19, discuss the implications of the special contribution made to the pension fund on the financial statements of Techno World (Pty) Ltd for the year ended 31 December 2022. (8 marks)