Bill Ltd Will Have to Pay for Long Service Leave

question 26

Multiple Choice

Bill Ltd will have to pay for long service leave (LSL) for its employees when they become entitled to it in 5 years' time.The estimate of this future payment is a:

• A)provision to be recognised when they become entitled to the LSL (when there is a legal obligation to pay the LSL)
• B)a contingent liability to be recognised this year
• C)a contingent liability to be recognised when they become entitled to the LSL
• D)provision to be recognised this year

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Definitions:

Born Out of Wedlock

Refers to a child born to parents who are not legally married to each other.

Foster Children

Children placed by a government or a social service agency into temporary care with a state-certified caregiver, known as foster parents.

Adoptive Families

Families that have become legally responsible for children who are not their biological offspring through the process of adoption, forming new familial bonds.

Infertility

The inability to conceive a child after trying for a significant amount of time or the inability to carry a pregnancy to full term.