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:

Hourly Wages

Compensation paid to employees based on the number of hours worked, typically expressed as an amount of money per hour.

Affordable Health Care Act

A comprehensive health care reform law enacted in 2010 aimed at expanding access to insurance, increasing consumer protections, and emphasizing prevention and wellness.

Lower Premiums

Reduced costs for insurance coverage, often a result of decreased risk, loyalty discounts, or efficient company operations.

Profit-Sharing Plans

Compensation schemes where employees receive a portion of the company's profits, in addition to their regular salaries.