Baxter,at Age 45,was Hired as the General Manager of the CountrySide

question 31

True/False

Baxter,at age 45,was hired as the general manager of the CountrySide Shipping Company by Carrothers,the company president.The initial contract of employment was for a three-year term,and was embodied in an exchange of letters between Baxter and Carrothers in 1982.At the end of the three-year term,Baxter continued on as general manager,receiving annual increases in salary,executive profit sharing,pension contributions,and discretionary bonuses,if business was exceptionally good in a given year.In January,1994,for no apparent reason,Carrothers called Baxter into his office,and told him his services were no longer required.Carrothers offered Baxter a week's salary as "severance pay." At the time of termination,Baxter was earning a salary of $70,000 per year,received company paid pension contributions of $5,000 annually,and,in 1993,had received $3,000 from profits shared,and a $5,000 bonus.One week's salary as severance pay would be the equivalent of reasonable notice for Baxter under the circumstances.

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Definitions:

AASB 41

The Australian Accounting Standards Board’s standard related to agriculture, which outlines how agricultural companies should account for and report their agricultural activity.

IAS 41

International Accounting Standard 41 is a framework governing the accounting and reporting of agricultural activity.

AASB 120

An Australian accounting standard regarding accounting for government grants and disclosure of government assistance.

IAS 20

A regulation named "Accounting for Government Grants and Disclosure of Government Assistance" under International Accounting Standards.