With Respect to the IASB Framework's Definition of a Liability,and

question 31

Multiple Choice

With respect to the IASB Framework's definition of a liability,and in particular the requirement for a present obligation,which of the following items would be recognised as liabilities?
i.An employee has accrued 2 months worth of long service leave with the company
ii.An employee has fallen ill and has accrued 12 days of sick leave which she will now use
iii.An employee has worked for the company for six years and has accrued 25 days sick leave

• A)i,iii
• B)i,ii,iii
• C)ii,iii
• D)i,ii

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Definitions:

Current Flow

The flow of carriers like electrons that carry electric charge through a conductor or an electric circuit.

Series Circuits

Electrical circuits in which components are connected end-to-end so that current flows through each component in turn without branching.

Path

The intended or actual route or course taken by something or someone.

Voltage

The difference in electric potential between two points, expressed in volts.