According to the Former Australian Guidance Section of AASB 119

question 65

Multiple Choice

According to the former Australian guidance section of AASB 119 what are the categories of long service leave entitlements and how should they be accounted for?

• A) Categories: Vesting and non-vesting accounting treatment: Vesting entitlements should be treated as a liability and expense of the period in which they are accumulated, while non-vesting entitlements should not be recognised until they vest.
• B) Categories - Unconditional, conditional and pre-conditional accounting treatment: Unconditional entitlements should be recognised as an expense and a liability as there is a commitment to a future cash outflow, whereas conditional and pre-conditional entitlements do not meet the AASB Framework requirements for recognition.
• C) Categories - Defined benefit and defined contribution accounting treatment: Defined benefit entitlements should be treated as a liability and expense of the period in which they are accumulated, while defined contribution entitlements should not be recognised until they are actually taken by the employee.
• D) Categories - Pre-conditional, conditional and unconditional accounting treatment: To the extent that entitlements accumulated in a period in any of the three categories are expected to result in future cash outflows for the reporting entity, they should be treated as expenses.
• E) None of the given answers.

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