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B. No Liability Is. Recognized at Year-End For Any Unused Entitlement
B. No Liability Is. Recognized at Year-End For Any Unused Entitlement
Easy. Non-monetary benefits such as medical care, housing, cars and free or subsidized goods and
services provided to current employees are classified, under IAS 19 Employee Benefits as
a. short-term employee benefits.
b. post-employment benefits.
c. other long-term employee benefits.
d. termination benefits.
Easy In accordance with the revised PAS 19, which of the following is not reported in proftt or loss?
a. Gain or loss on non-routine settlements
b. Past service cost if not yet vested
c. Net interest on defined 'benefit asset.
d. None of the above
Average. Which of the following is a valid statement regarding accounting for non-accumulating paid absences?
a. An expense is recognized when the employee renders service in the current period that increases his
entitlement to the benefits
b. No liability is. recognized at year-end for any unused entitlement.
c. A liability is recognized at year-end equal to the best estimate of any unused entitlement
that the employee will avail in future periods.
d. No expense is recognized for non-accumulating paid absences
Average. In accordance with the revised PAS 19, the asset ceiling includes?
a. Unrecognized actuarial losses
b. Unrecognized past service cost
c. Present value of any economic benefits available in the form of refunds from the plan or reductions in
future contributions to the plan.
d. All of the above.
Average. A liability for compensated absences, for which it is expected that employees will be paid, should
a. Be accrued during the period when the compensated time is expected to be used by employees.
b. Be accrued during' the period following vesting.
c. Be accrued during the period when earned.
d. Not be accrued unless a written contractual obligation exists.
Average. An entity shall recognize a liability and expense for termination benefits
a. When the entity can no longer withdraw the offer of those benefits.
b. When the entity recognizes costs for a restructuring that is within the scope of PAS 37 and involves the
payment of termination benefits.
c. At the earlier of a or b.
d. At the later of a or b.
Difficult. Which statement is incorrect regarding short-term employee benefits?
a. Short-term employee benefits include non-monetary benefits for current employees if expected to be settled
wholly before twelve months after the end of the annual reporting period in which the employees render the related
services.
b. An entity need not reclassify a short-term employee benefit if the entity's expectations of the timing of
settlement change temporarily.
c. If profit-sharing and bonus payments are not expected to be settled wholly before twelve months after the
end of the annual reporting period in which the employees render the related service, those payments are other long-
term employee benefits.
d. PAS 19 requires disclosures about short-term employee benefits for key management personnel,
Difficult. Which of these assets should be included within the valuation of the plan assets?
a. Unpaid contributions
b. Unlisted corporate bonds that are redeemable but not transferable without the entity's permission
c. A loan to the entity that cannot be assigned to a third party
d. Investments returns in listed companies