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professor i don’t get why the examiner says ” Agree the individual bonus payments to the POST YEAR-END payroll records”??
how do we know that we have review post yr end payroll records? and not YEAR END payroll records?
It depends …. when the bonus will be paid.
Suppose y/e 31 December.
Company A has a bonus policy to pay all staff an extra week in December as a “Christmas bonus” – employees would expect to receive such a bonus in their December pay – so it would be included in the y/e payroll.
Company B pays sales managers a bonus calculated as a percentage on a sliding scale of the actual sales they make during the year. They will still be making sales in December – so their actual sales will not be confirmed until January – and the bonuses included in the January payroll.
Ya but Ma’am questions don’t often make clarity to the extent you mention, with re to timing of cash outflow. So then what do we write as far as the SP goes…”agree the subsequent payment to post yr end/pre-yr end/ (what if we don’t mention pre or post at all?) payroll records”
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