[THEORY] Other Employee Benefits Flashcards
Short-term employee benefits include all, except
a. Wages, salaries and social security contributions.
b. Short-term compensated absences.
c. Profit-sharing bonus payable in more than twelve months after the end of reporting period.
d. Nonmonetary benefits, such as medical care, housing, car and free and subsidized goods.
c. Profit-sharing bonus payable in more than twelve months after the end of reporting period.
Short-term employee benefits are described by all, except
a. No actuarial assumptions are required.
b. There is no possibility of any actuarial gain or loss.
C. Short-term employee benefits by definition are payable no later than twelve months after year-end.
d. Short-term employee benefit obligations are measured on a discounted basis.
d. Short-term employee benefit obligations are measured on a discounted basis.
These are compensated or paid absences that are carried forward and can be used in future periods and the employees are entitled to a cash payment for unused entitlement on leaving the entity.
a. Accumulating and vesting
b. Accumulating and nonvesting
C. Nonaccumulating and vesting
d. Nonaccumulating and nonvesting
a. Accumulating and vesting
Which of the following criteria is not required for the recognition of a liability for compensated absences?
a. The amount of the obligation must be estimable.
b. Payment of the obligation must be probable.
C. Payment of the obligation will require the use of current assets.
d. The compensation either vests with the employee or can be carried forward to subsequent years.
C. Payment of the obligation will require the use of current assets.
These are employee benefits that are payable as a result of an employee’s decision to accept an offer of benefits in exchange for ‘termination of employment.
a. Termination benefits
b. Short-term employee benefits
C. Other long-term employee benefits
d. Postemployment employee benefits
a. Termination benefits
Employees are each entitled to 20 days of paid holiday leave per year. Unused holiday leave
cannot be carried forward and does not vest. What is the holiday leave?
a. Short-term employee benefit
b. Postemployment benefit
c. Other long-term employee benefit
d.Termination benefit
a. Short-term employee benefit
Employees are entitled to 10 days of holiday leave per year. Unused holiday leave may be carried forward until the employee leaves the employment of the entity, at which time the entity will pay the employee for all unused holiday leave. What is the holiday leave?
a. Short-term employee benefit
b. Post-employment benefit
c. Other long-term employee benefit
d. Termination benefit
ANSWER: c. Other long-term employee benefit
An entity made a public announcement of a commitment to a voluntary redundancy plan.
The entity has an obligation to pay employees that choose voluntary redundancy a lump sum equal to twice their gross annual salary. What is the obligation to pay employees that choose voluntary redundancy?
a. Short-term employee benefit
b. Postemployment benefit
C. Other long-term employee benefit
d. Termination benefit
d. Termination benefit
A profit-sharing plan requires an entity to pay a specified proportion of the cumulative profit for a five-year period to employees who serve throughout the five-year period.What is the profitsharing plan?
a. Short-term employee benefit
b. Postemployment benefit
c. Other long-term employee benefit
d. Termination benefit
c. Other long-term employee benefit
What are compensated absences?
a. Unpaid time off
b. A form of healthcare
c. Payroll deductions
d. Paid time off
d. Paid time off
A liability for paid absences 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.
C. Be accrued during the period when earned.
If the payment of employees’ compensation for future absences is probable, the amount can be
reasonably estimated and the obligation relates to rights that accumulate, the compensation should be
a. Accrued if attributable to employees’ services not yet rendered.
b. Accrued if attributable to employees’ services already rendered.
c. Accrued if attributable to employees’ services whether already rendered or not.
d. Recognized when paid
b. Accrued if attributable to employees’ services already rendered.
An employer offered special termination benefits. The employees accepted the offer which provided for immediate lump sum payments and future payments at the end of the next two years. The amount of expense recognized in the current year should include
a. The total of the lump sum and future payments
b. One third of the lump sum payments and one third of the present value of the future
payments
c. Only the lump sum payments
d. The lump sum payments and the present value of the future payments
d. The lump sum payments and the present value of the future payments
What is the requirement for the accrual of a sick pay?
a. Sick pay benefits can be reliably estimated.
b. Sick pay benefits vest.
c. Sick pay benefits do not vest.
d. Sick pay benefits accumulate.
b. Sick pay benefits vest.
