IAS 19 Adopts Which Method to Determining Long Service Leave

question 7

Multiple Choice

IAS 19 adopts which method to determining long service leave obligations?

• A) units of production method
• B) the actuarial method
• C) the bi-nominal method
• D) projected unit credit method

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Definitions:

Statute of Frauds

A legal concept that requires certain types of contracts to be executed in writing and signed by all parties involved to be legally enforceable.

Guarantee Indebtedness

A commitment by one party to answer for the financial liabilities or obligations of another party, ensuring the debt will be paid.

Breach of Contract

Violation of any terms or conditions in a contract without a lawful excuse, which may result in legal action.

Adequacy of Consideration

A legal principle assessing whether what is exchanged in a contract (goods, services, or money) is fair and of sufficient value.