Which Statement Relating to Employee Benefits Is Incorrect

question 26

Multiple Choice

Which statement relating to employee benefits is incorrect?

• A) Employee benefits are defined as all forms of consideration given by an entity in exchange for services rendered by employees.
• B) If an employee benefit meets the Conceptual Framework's definition of a liability, it is recognised as a liability, if it meets the definition of an expense it is recognised as an expense.
• C) Wages and salaries, annual leave and sick leave are recorded at their nominal amounts.
• D) Long-term employee benefits are recorded at their recoverable amount.

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Definitions:

Member's Behaviour

The actions or conduct of individuals who are part of a group or organization, which can influence the group's dynamics and outcomes.

Guide Behaviour

A process or set of guidelines used to influence or direct someone's actions toward a desired outcome.

Strategic Constituencies Analysis

An assessment method used in strategic management to identify and evaluate the expectations and influence of various stakeholders within an organization.

Mission and Domain Analysis

The process of both defining an organization's purpose, goals, and scope of operations, and identifying its strategic or competitive domain.