E2 Employee benefits

Which of these is a short-term employee benefit?

• 1 Wages and paid annual leave due within 12 months
• 2 Share capital
• 3 A loan to the entity
• 4 A pension payable in 20 years

120 employees are expected to carry forward an average of 1.5 unused days each and the daily pay is $80. What is the accrual for accumulating leave?

• 1 $12,000
• 2 $14,400
• 3 $9,600
• 4 $28,800

When is the cost of accumulating paid leave recognised?

• 1 When the leave is taken
• 2 Never
• 3 As the employees render the service that earns the entitlement
• 4 When the employee leaves

In a defined contribution plan, what is the expense for the period?

• 1 Nothing, as the employee bears the cost
• 2 The fund's investment return
• 3 An actuarial estimate of future benefits
• 4 The contributions payable for the service in the period

An entity must contribute 8 percent of salaries of $2,500,000 and paid $180,000 in the year. What liability is recognised?

• 1 $0
• 2 $20,000
• 3 $180,000
• 4 $200,000

When are termination benefits recognised?

• 1 When the employee is hired
• 2 When the employee receives the payment
• 3 At the earlier of when the offer can no longer be withdrawn and when related restructuring costs are recognised
• 4 At the year end always

Who bears the investment risk in a defined contribution plan?

• 1 The entity
• 2 The government
• 3 The auditor
• 4 The employee

A profit-sharing bonus is recognised when:

• 1 The board first discusses it
• 2 The bonus is paid
• 3 The year end passes
• 4 There is a present obligation and a reliable estimate