Tigger Limited is a company that is involved in the tourism industry. Tigger Limited specialises in...
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Tigger Limited is a company that is involved in the tourism industry. Tigger Limited specialises in overnight game drives. The directors of Tigger Limited believe that the most important asset in any company is the employees of the company. As such they have a number of benefits for their employees. Vacation leave: . . All staff members are entitled to 20 days of paid leave annually. This leave can accumulate indefinitely, but is forfeited when an employee leaves the company. The leave may never be converted to cash. . In total, there are a total of 320 leave days outstanding at 31 December 20X6, which were earned in the current year. However, 10 staff members will be leaving on 2 January 20X7. Their leave details are as follows: On 31 December 20X5: a total of 20 days leave was due to them. On 31 December 20x6: a total of 40 days leave due to them. Bonuses: • Every year Tigger Limited pays out 10% of their profit to its employees. The profit is shared amongst the number of employees employed at year-end. • The only condition is the employee had to be employed at Tigger Limited for the entire year. If an employee is not employed for the entire year, he forfeits his share of the profit. The forfeited profit is not distributed amongst the other employees. • Employees are very loyal to the company with employees spending a minimum of 5 years with the company. On 26 July 20X6, Tigger Limited hired 5 new employees. No employees left during the current year. The profit for the year ended 31 December 20X6 was C5 000 000. Defined benefit plan: • Details of the defined benefit pension plan during 20X6: . Current service cost Benefits paid to members Return on plan assets Contributions paid to the fund . Finance charges on plan obligation Actuarial gain realised during the year Defined benefit plan asset balance as at 1 January 20x6 Defined benefit plan obligation as at 1 January 20X6 Fair value of plan assets at 31 December 20X6 Present value of plan obligation at 31 December 20X6 250 000 500 000 50 000 General: At year end Tigger Limited had a total staff complement of 80 employees The average annual salary is C250 000. There are 250 working days in a year. 400 000 90 000 10 000 1 100 000 1.500.000 1 060 000 1 348 000 Required: a) Calculate the amount that will be charged to staff costs (employee benefit expense) in the statement of comprehensive income. b) Provide the note disclosure for the defined benefit plan for the year ended 31 December 20X6. Tigger Limited is a company that is involved in the tourism industry. Tigger Limited specialises in overnight game drives. The directors of Tigger Limited believe that the most important asset in any company is the employees of the company. As such they have a number of benefits for their employees. Vacation leave: . . All staff members are entitled to 20 days of paid leave annually. This leave can accumulate indefinitely, but is forfeited when an employee leaves the company. The leave may never be converted to cash. . In total, there are a total of 320 leave days outstanding at 31 December 20X6, which were earned in the current year. However, 10 staff members will be leaving on 2 January 20X7. Their leave details are as follows: On 31 December 20X5: a total of 20 days leave was due to them. On 31 December 20x6: a total of 40 days leave due to them. Bonuses: • Every year Tigger Limited pays out 10% of their profit to its employees. The profit is shared amongst the number of employees employed at year-end. • The only condition is the employee had to be employed at Tigger Limited for the entire year. If an employee is not employed for the entire year, he forfeits his share of the profit. The forfeited profit is not distributed amongst the other employees. • Employees are very loyal to the company with employees spending a minimum of 5 years with the company. On 26 July 20X6, Tigger Limited hired 5 new employees. No employees left during the current year. The profit for the year ended 31 December 20X6 was C5 000 000. Defined benefit plan: • Details of the defined benefit pension plan during 20X6: . Current service cost Benefits paid to members Return on plan assets Contributions paid to the fund . Finance charges on plan obligation Actuarial gain realised during the year Defined benefit plan asset balance as at 1 January 20x6 Defined benefit plan obligation as at 1 January 20X6 Fair value of plan assets at 31 December 20X6 Present value of plan obligation at 31 December 20X6 250 000 500 000 50 000 General: At year end Tigger Limited had a total staff complement of 80 employees The average annual salary is C250 000. There are 250 working days in a year. 400 000 90 000 10 000 1 100 000 1.500.000 1 060 000 1 348 000 Required: a) Calculate the amount that will be charged to staff costs (employee benefit expense) in the statement of comprehensive income. b) Provide the note disclosure for the defined benefit plan for the year ended 31 December 20X6.
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a500000 250030 10000 C760030 The amount that will be charged to staff costs employee benefit expense ... View the full answer
Related Book For
Business Analytics and Statistics
ISBN: 978-0730363330
1st edition
Authors: Ken Black, John Asafu Adjaye, Paul Burke, Nelson Perera, Carl Sherwood, Saleh A. Wasimi
Posted Date:
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