AASB 119 Requires an Entity to Record a Liability for Long

question 17

Multiple Choice

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

• A) when the leave is taken by the employee.
• B) in a consistent manner from year to year.
• C) when the employee becomes legally entitled to the leave.
• D) as the employee provides service to the entity even though they may have no legal entitlement to the leave.

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Definitions:

Bearer Instruments

Financial documents that accord ownership or payment to the person physically holding the document.

Payable

Refers to an amount of money that is owed by a person or company and is required to be paid to another party.

Bearing Them

Taking responsibility for or dealing with something, often implying a burden or hardship that must be endured.

Transferable

Characteristic of an item, right, or obligation, that allows it to be passed from one party to another, often involving legal documentation.