Question 1

AASB 119 requires an entity to record a liability for long service leave:

Accepted Answer

A)   once the employee becomes presently entitled to the leave
B)   as the employee provides service to the entity
C)   when the leave is taken by the employee
D)   in a consistent manner from year to yearE) A) and B)
F) A) and C)

Question 2

Salary sacrificing refers to:

Accepted Answer

A)   an employer withholding a portion of an employee's salary or wages for sub-standard performance
B)   an employee not receiving a portion of their salary and wages due to the fact that pre-determined performance targets have not been met
C)   an employee foregoing some of their salary because leave entitlements such as sick leave have been exceeded
D)   an employee electing to forego some of their salary or wages in return for other non-cash benefitsE) All of the above
F) A) and D)

Question 3

If the amount paid to the defined contribution fund by an entity during the year is less than the amount payable in relation to service provided by employees, the entity must recognise;

Accepted Answer

A)   an asset for the unpaid contributions 
B)   a liability for the unpaid contributions
C)   an expense for the unpaid contributions
D)   a gain for the unpaid contributionsE) A) and D)
F) B) and C)

Question 4

AASB 119 does NOT prescribe the accounting treatment for:

Accepted Answer

A)   contributions to defined contribution post-employment benefit funds
B)   contributions received by a defined contribution post-employment benefit fund
C)   assets arising from defined benefit post-employment benefit plans from the perspective of the employer
D)   liabilities arising from defined benefit post-employment benefit plans from the perspective of the employerE) None of the above
F) All of the above

Question 5

Pirate Ltd employs 5 staff. Each staff member is entitled to 20 days annual leave per annum. Leave loading of 17.5% is paid when the leave is taken. At 1 July 2013 the balance in the provision for annual leave account was $20 303.
Details of each employees leave entitlement at 30 June 2014 are as follows:
  Employee  Salary  Days owing @ 1/7/13 Days taken  during year  Jo Bird $650001722 Bill Brown $70000512 Ben Fit $850002418 Greg Horn $62500315 Lou Hamilton $90000926\begin{array}{|l|l|l|l|}\hline 	ext { Employee } & 	ext { Salary } & \begin{array}{l}	ext { Days owing @ } \1 / 7 / 13\end{array} & \begin{array}{l}	ext { Days taken } \	ext { during year }\end{array} \\hline 	ext { Jo Bird } & \$ 65000 & 17 & 22 \\hline 	ext { Bill Brown } & \$ 70000 & 5 & 12 \\hline 	ext { Ben Fit } & \$ 85000 & 24 & 18 \\hline 	ext { Greg Horn } & \$ 62500 & 3 & 15 \\hline 	ext { Lou Hamilton } & \$ 90000 & 9 & 26 \\hline\end{array} Employee  Jo Bird  Bill Brown  Ben Fit  Greg Horn  Lou Hamilton ​ Salary $65000$70000$85000$62500$90000​ Days owing @ 1/7/13​1752439​ Days taken  during year ​2212181526​​ 
There are 260 work days in a year. On 1 July each year all employees receive a 5% wage rise. There are no other wage rises given during the year.
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Annual leave payments made during the year were debited against the provision account. The total debit against the annual leave account during the year in relation to leave taken was:

Accepted Answer

A)   $27 221
B)   $28 654
C)   $33 585
D)   $33 668 E) None of the above
F) A) and B)

Question 6

Benefits paid to members of a defined contribution post-employment fund are based on:
I \quad  the level of contributions made to the fund 
II  \quad remuneration levels while employed
III  \quad number of year's service
IV  \quad investment returns generated by the fund

Accepted Answer

A)   I and II only
B)   II and III only
C)   III and IV only
D)   I and IV only E) C) and D)
F) All of the above D

Question 7

Which if the following is NOT an example of a short-term employee benefit?

Accepted Answer

A)   wages and salaries
B)   termination payments
C)   bonuses and profit-sharing arrangements
D)   short-term compensated benefitsE) B) and C)
F) A) and B)

Question 8

Actuarial gains or losses can arise from:
I  \quad employee service provided in the current period 
II  \quad the unwinding of the discount applied to the obligation 
III  \quad changes to actuarial assumptions
IV  \quad experience adjustments

Accepted Answer

A)   I and II
B)   II and III
C)   III and IV
D)   I and IV E) B) and C)
F) All of the above

Question 9

The nominal value of an accumulated benefit for long service leave is calculated as (Years of employment/Years required for LSL)  x (weeks of paid leave/52)  x ………..?

Accepted Answer

A)   current salaries
B)   projected salaries x (1+inflation rate) n
C)   current salaries / (1+inflation rate) n
D)   projected salariesE) B) and D)
F) A) and B)

Question 10

An increase in the present value of a defined benefit obligation resulting from employee service in the current period is referred to as:

Accepted Answer

A)   the current service cost
B)   the past service cost
C)   the interest cost
D)   an actuarial gain or lossE) B) and D)
F) B) and C) A

Question 11

Employee benefits can be allocated to assets:

Accepted Answer

A)   only if it relates to the cost of an internally generated intangible
B)   where the entity is certain the future economic benefits will flow to it
C)   in accordance with the requirements of other accounting standards
D)   where they meet the definition of an asset under the Conceptual FrameworkE) B) and C)
F) A) and D)

Question 12

AASB 119 adopts which method to determining long service leave obligations?

Accepted Answer

A)   units of production method
B)   the actuarial method
C)   the bi-nominal method
D)   projected unit credit methodE) A) and B)
F) All of the above

Question 13

AASB 119 defines employee benefits as:

Accepted Answer

A)   any cash consideration given by an entity to employees or their authorised representatives in exchange for services rendered by the employee
B)   all forms of consideration given by an entity to employees or their authorised representatives in exchange for services rendered by the employee
C)   all forms of consideration given by an entity in exchange for service rendered by employees
D)   all forms of consideration given by an entity to employees or their authorised representativesE) B) and D)
F) A) and B)

Question 14

Which of the following types of employee benefits are required to be measured at their nominal value?

Accepted Answer

A)   long service leave
B)   defined benefit post-employment benefits
C)   accumulating non-vesting sick leave
D)   defined contribution employment benefitsE) A) and B)
F) A) and C)

Question 15

AASB 119 requires short-term employee benefits to be measured at:

Accepted Answer

A)   future value
B)   nominal value
C)   present value
D)   fair valueE) A) and B)
F) None of the above

Question 16

Benefits paid to members of a defined benefit post-employment fund are based on:
I the level of employer contributions made to the fund
II remuneration levels while employed
III number of years service
IV investment returns generated by the fund

Accepted Answer

A)   I and II only
B)   II and III only
C)   III and IV only
D)   I and IV onlyE) A) and C)
F) All of the above

Question 17

Which of the following obligations do NOT arise from past services provided by an employee?

Accepted Answer

A)   short-term compensated absences
B)   termination benefits
C)   other long-term employee benefits
D)   post-employment benefitsE) All of the above
F) B) and C) B

Question 18

The key steps involved in accounting by the employer for a defined benefit post-employment fund in accordance with AASB 119 include:

Accepted Answer

A)   determining the deficit or surplus of the fund
B)   determining the amount of the net defined benefit liability (asset) 
C)   determining the amounts to be recognised in profit or loss for current service cost, any past service cost and net interest expense (income)  on the net defined benefit liability (asset) 
D)   all of the options are correctE) A) and B)
F) None of the above

Question 19

An entity is able to record a provision for termination benefits when it:

Accepted Answer

A)   has a detailed formal plan
B)   has a definite intention of terminating employment
C)   has received Board approval for the termination benefits
D)   can no longer withdraw the offer of the benefitsE) B) and C)
F) A) and D)

Question 20

Determining an entity's liability for long service leave requires estimation of:

Accepted Answer

A)   when the leave will be taken
B)   projected salary levels
C)   proportion of employees who will become entitled to the leave
D)   all of the above.E) B) and C)
F) A) and B)

Exam 11: Employee Benefits

AASB 119 requires an entity to record a liability for long service leave:

Correct Answer
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Salary sacrificing refers to:

Correct Answer
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If the amount paid to the defined contribution fund by an entity during the year is less than the amount payable in relation to service provided by employees, the entity must recognise;

Correct Answer
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AASB 119 does NOT prescribe the accounting treatment for:

Correct Answer
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Benefits paid to members of a defined contribution post-employment fund are based on: I $\quad$ the level of contributions made to the fund II $\quad$ remuneration levels while employed III $\quad$ number of year's service IV $\quad$ investment returns generated by the fund

Correct Answer
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D

Which if the following is NOT an example of a short-term employee benefit?

Correct Answer
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Actuarial gains or losses can arise from: I $\quad$ employee service provided in the current period II $\quad$ the unwinding of the discount applied to the obligation III $\quad$ changes to actuarial assumptions IV $\quad$ experience adjustments

Correct Answer
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The nominal value of an accumulated benefit for long service leave is calculated as (Years of employment/Years required for LSL) x (weeks of paid leave/52) x ………..?

Correct Answer
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An increase in the present value of a defined benefit obligation resulting from employee service in the current period is referred to as:

Correct Answer
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A

Employee benefits can be allocated to assets:

Correct Answer
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AASB 119 adopts which method to determining long service leave obligations?

Correct Answer
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AASB 119 defines employee benefits as:

Correct Answer
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Which of the following types of employee benefits are required to be measured at their nominal value?

Correct Answer
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AASB 119 requires short-term employee benefits to be measured at:

Correct Answer
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Benefits paid to members of a defined benefit post-employment fund are based on: I the level of employer contributions made to the fund II remuneration levels while employed III number of years service IV investment returns generated by the fund

Correct Answer
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Which of the following obligations do NOT arise from past services provided by an employee?

Correct Answer
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B

The key steps involved in accounting by the employer for a defined benefit post-employment fund in accordance with AASB 119 include:

Correct Answer
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An entity is able to record a provision for termination benefits when it:

Correct Answer
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Determining an entity's liability for long service leave requires estimation of:

Correct Answer
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Exam 11: Employee Benefits

AASB 119 requires an entity to record a liability for long service leave:

Correct AnswerverifiedShow Answer

Salary sacrificing refers to:

Correct AnswerverifiedShow Answer

If the amount paid to the defined contribution fund by an entity during the year is less than the amount payable in relation to service provided by employees, the entity must recognise;

Correct AnswerverifiedShow Answer

AASB 119 does NOT prescribe the accounting treatment for:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Benefits paid to members of a defined contribution post-employment fund are based on: I \quad the level of contributions made to the fund II \quad remuneration levels while employed III \quad number of year's service IV \quad investment returns generated by the fund

Correct AnswerverifiedD

Which if the following is NOT an example of a short-term employee benefit?

Correct AnswerverifiedShow Answer

Actuarial gains or losses can arise from: I \quad employee service provided in the current period II \quad the unwinding of the discount applied to the obligation III \quad changes to actuarial assumptions IV \quad experience adjustments

Correct AnswerverifiedShow Answer

The nominal value of an accumulated benefit for long service leave is calculated as (Years of employment/Years required for LSL) x (weeks of paid leave/52) x ………..?

Correct AnswerverifiedShow Answer

An increase in the present value of a defined benefit obligation resulting from employee service in the current period is referred to as:

Correct AnswerverifiedA

Employee benefits can be allocated to assets:

Correct AnswerverifiedShow Answer

AASB 119 adopts which method to determining long service leave obligations?

Correct AnswerverifiedShow Answer

AASB 119 defines employee benefits as:

Correct AnswerverifiedShow Answer

Which of the following types of employee benefits are required to be measured at their nominal value?

Correct AnswerverifiedShow Answer

AASB 119 requires short-term employee benefits to be measured at:

Correct AnswerverifiedShow Answer

Benefits paid to members of a defined benefit post-employment fund are based on: I the level of employer contributions made to the fund II remuneration levels while employed III number of years service IV investment returns generated by the fund

Correct AnswerverifiedShow Answer

Which of the following obligations do NOT arise from past services provided by an employee?

Correct AnswerverifiedB

The key steps involved in accounting by the employer for a defined benefit post-employment fund in accordance with AASB 119 include:

Correct AnswerverifiedShow Answer

An entity is able to record a provision for termination benefits when it:

Correct AnswerverifiedShow Answer

Determining an entity's liability for long service leave requires estimation of:

Correct AnswerverifiedShow Answer

Correct Answer
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Benefits paid to members of a defined contribution post-employment fund are based on: I $\quad$ the level of contributions made to the fund II $\quad$ remuneration levels while employed III $\quad$ number of year's service IV $\quad$ investment returns generated by the fund

Correct Answer
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D

Correct Answer
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Actuarial gains or losses can arise from: I $\quad$ employee service provided in the current period II $\quad$ the unwinding of the discount applied to the obligation III $\quad$ changes to actuarial assumptions IV $\quad$ experience adjustments

Correct Answer
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Correct Answer
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A

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B

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