Question 1

The discount rate to be used when estimating future cash outflows relating to an employee benefit that is expected to be paid out in 20 years by a Sydney company should be restricted to:

Accepted Answer

A)   the current yield on 20 year Australian Government Bonds
B)   the current yield on high quality bonds
C)   no estimation of future cash outflows is required
D)   none of the above

Question 2

Under AASB 119,the recognition criteria for liabilities for profit sharing and bonus plans is:

Accepted Answer

A)   It is probable the liability will be settled and the amount of the liability can be measured consistently
B)   It is reasonably certain the liability will be settled
C)   It is probable the liability will be settled
D)   The entity has a present legal or constructive obligation to settle the liability, and the amount of the liability is capable of being measured reliably

Question 3

The method of accounting for superannuation costs based on the assumption that the trust that manages the superannuation plan is a separate legal entity to the employer and is responsible for the fund's obligations is:

Accepted Answer

A)   the form method
B)   the legal entity method
C)   the net-worth method
D)   none of the above

Exam 13: Accounting for Employee Benefits

The method of accounting for superannuation costs based on the assumption that the trust that manages the superannuation plan is a separate legal entity to the employer and is responsible for the fund's obligations is:

Correct Answer
verified

The discount rate to be used when estimating future cash outflows relating to an employee benefit that is expected to be paid out in 20 years by a Sydney company should be restricted to:

Correct Answer
verified

Under AASB 119,the recognition criteria for liabilities for profit sharing and bonus plans is:

Correct Answer
verified

Exam 13: Accounting for Employee Benefits

The method of accounting for superannuation costs based on the assumption that the trust that manages the superannuation plan is a separate legal entity to the employer and is responsible for the fund's obligations is:

Correct AnswerverifiedShow Answer

The discount rate to be used when estimating future cash outflows relating to an employee benefit that is expected to be paid out in 20 years by a Sydney company should be restricted to:

Correct AnswerverifiedShow Answer

Under AASB 119,the recognition criteria for liabilities for profit sharing and bonus plans is:

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified