Question 3 Employee Benefits (16 marks) Part A (8 marks) The employees of Thunderbirds Ltd are...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Question 3 Employee Benefits (16 marks) Part A (8 marks) The employees of Thunderbirds Ltd are entitled to 13 weeks' long service leave after 15 years' continuous service. The company recognises the provision for long service leave using the projected unit credit approach. The following information has been compiled for calculating the liability for long-service leave as at 30 June 2020. Years of service as at 30 June 2020 Number of employees as at 30 June 2020 Aggregate annual salaries for 2019-2020 Aggregate projected annual salaries when leave is due Period to maturity 3 years 4 years 11 years 12 years 16 years 4 22 550 000 16 2 80 000 Total 24 $630 000 The long-service leave liability reported for the year ended 30 June 2019 was $22 360. During the 2019-20 financial year, there was no long service leave taken. Probability of becoming unconditionally entitled to long- service leave 940 000 80 000 $1 020 000 0.35 1.00 The following relevant government and corporate bond rates have been identified. Government bond rate Corporate bond rate (%) (%) 3.0 3.5 3.5 4.0 7.0 8.0 8.0 10.0 9.0 11.0 REQUIRED: Prepare the general journal entries, including narrations, for the year ended 30 June 2020 to provide for long-service leave for employees in accordance with the requirements of AASB 119 'Employee Benefits' Show all calculations. Round to the nearest $ amount. Part B (8 marks) Briefly explain the situations when the recognition of liabilities or assets for defined contribution and defined benefit post-employment plans is required in accordance with AASB 119 'Employee Benefits'. Question 3 Employee Benefits (16 marks) Part A (8 marks) The employees of Thunderbirds Ltd are entitled to 13 weeks' long service leave after 15 years' continuous service. The company recognises the provision for long service leave using the projected unit credit approach. The following information has been compiled for calculating the liability for long-service leave as at 30 June 2020. Years of service as at 30 June 2020 Number of employees as at 30 June 2020 Aggregate annual salaries for 2019-2020 Aggregate projected annual salaries when leave is due Period to maturity 3 years 4 years 11 years 12 years 16 years 4 22 550 000 16 2 80 000 Total 24 $630 000 The long-service leave liability reported for the year ended 30 June 2019 was $22 360. During the 2019-20 financial year, there was no long service leave taken. Probability of becoming unconditionally entitled to long- service leave 940 000 80 000 $1 020 000 0.35 1.00 The following relevant government and corporate bond rates have been identified. Government bond rate Corporate bond rate (%) (%) 3.0 3.5 3.5 4.0 7.0 8.0 8.0 10.0 9.0 11.0 REQUIRED: Prepare the general journal entries, including narrations, for the year ended 30 June 2020 to provide for long-service leave for employees in accordance with the requirements of AASB 119 'Employee Benefits' Show all calculations. Round to the nearest $ amount. Part B (8 marks) Briefly explain the situations when the recognition of liabilities or assets for defined contribution and defined benefit post-employment plans is required in accordance with AASB 119 'Employee Benefits'.
Expert Answer:
Answer rating: 100% (QA)
A General journal entries for the year ended 30 June 2020 to provide for longservice leave ... View the full answer
Related Book For
Accounting Business Reporting For Decision Making
ISBN: 9780730302414
4th Edition
Authors: Jacqueline Birt, Keryn Chalmers, Albie Brooks, Suzanne Byrne, Judy Oliver
Posted Date:
Students also viewed these accounting questions
-
The following selected information has been compiled for Sherwood Park Inc. Sherwood Park owns a series of discount clothing stores in Western Canada. You are the new accountant hired by Sherwood...
-
The employees of XYZ Ltd are entitled to 10 weeks' long-service leave (LSL) after 10 years of continuous service with the company. The pre-conditional period is 5 years. The following information has...
-
The following selected information has been compiled for Sherwood Park Inc. Sherwood Park owns a series of discount clothing stores in Western Canada. You are the new accountant hired by Sherwood...
-
Consider a game played by two lobbyists 1 and 2 sponsoring two distinct versions of a bill. The value of having version i = {1, 2} approved equals v; to lobbyist i and equals 0 to lobbyist j, for...
-
Lindon Company uses 5,000 units of Part X each year as a component in the assembly of one of its products. The company is presently producing Part X internally at a total cost of $80,000 as follows:...
-
In a high-energy collision between a cosmic-ray particle and a particle near the top of Earth's atmosphere, 120 km above sea level, a pion is created. The pion has a total energy E of 1.35 x 105 MeV...
-
Top management continually emphasizes and supports investments designed to improve the efficiency of the manufacturing process. Such a focus most likely reflects the pursuit of which type of...
-
The Terrell Company can manufacture three products: Alpha, Beta, and Zeta, which sell for $20, $25, and $40, respectively. The materials cost for one unit is $4 for Alpha, $12 for Beta, and $10 for...
-
McEwan Industries sells on terms of 3 / 1 0 , net 2 0 . Total sales for the year are $ 1 , 3 4 6 , 5 0 0 ; 4 0 % of the customers pay on the 1 0 th day and take discounts, while the other 6 0 % pay,...
-
Critically discuss whether the CAPM makes portfolio theory redundant.
-
STATA Exercise: The data set "NLSW88.dta" on Courseworks contains information of a group of women in their 30s and early 40s which was used to to study labor force patterns. We will work with...
-
A sample of 200 voters over the age of 60 were asked whether they thought Social Security benefits should be increased for people over the age of 65. A total of 95 of them answered yes. A sample of...
-
With ______________ samples, each value in one sample can be matched with a corresponding value from another sample. In Exercises 3 and 4, fill in each blank with the appropriate word or phrase.
-
In a clinical trial to compare the effectiveness of two pain relievers, a sample of 100 patients was given drug 1 and an independent sample of 200 patients was given drug 2. Of the patients on drug...
-
The margin of error for the mean difference between matched pairs is usually ______________ than the margin of error for independent samples. In Exercises 3 and 4, fill in each blank with the...
-
To construct a confidence interval using matched pairs, we must compute the standard deviation of each sample. In Exercises 5 and 6, determine whether the statement is true or false. If the statement...
-
QUESTION 2 Evaluate the following limits. x+x-2 a) lim x-3x-3 x-121 b) lim X-11 X-11 c) lim *+-X (3 marks) 3x-5x+9 2x-5 (2 marks) (3 marks)
-
Ex. (17): the vector field F = x i-zj + yz k is defined over the volume of the cuboid given by 0x a,0 y b, 0zc, enclosing the surface S. Evaluate the surface integral ff, F. ds?
-
You have a friend who is considering purchasing some shares in LookFool Ltd. The shares are currently trading on the stock exchange at $3.58 each. The entity's financial statements suggest that the...
-
Differentiate between predatory pricing, dumping and collusive pricing.
-
Bigger n' Better Pty Ltd has just acquired the Tiny Tots business. The fair value of Tiny Tots' net assets as at the date of acquisition is $1 855 000. Bigger n' Better Pty Ltd has agreed to pay the...
-
Oligopolists may charge a price lower than the profit-maximizing price to _________ new firms from entering the market. This strategy will be effective when new firms face _________ costs than...
-
In the traditional prisoners dilemma, a(n) _________ matrix is used to illustrate the various possibilities and results for the two parties.
-
In _________, each firm sets its policy without consulting other firms.
Study smarter with the SolutionInn App