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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Employee benefits
Dear sir,
I have a doubt with these questions in the BPP text
In Activity 1 of Chapter 4, Plyman co, why do we only recognise 12 days of the 8 workers unused holiday allowance? I thought the answer was (3×92)+(1.5×8)
Can you tell me how this should be calculated?
Also, in activity 2, theres a line in the qn which says, ” there’s no cash payment when an employee leaves w.r.t. holiday entitlement”? What does this mean?
And lastly sir, what does this mean
“You’ve worked more than you should on full pay, but next year you will
work less than you should on full pay.”
Thanks.
Answering the last question, the idea of a holiday pay accrual is to recognise that, if staff save up their holiday, they will be doing less work in Year 2 than in Year 1. Therefore a greater charge for wages should be made in Year 1 than in Year 2.
Re the other questions, I don’t have a copy of the BPP text, so please summarise the scenario.
Also please post each question in a separate thread.
Thanks.