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- June 6, 2016 at 9:56 pm #320076
Mark, i thought so as well
May 15, 2016 at 2:20 am #315112Is directional testing an example of test of detail?
August 18, 2015 at 11:11 pm #267696Question
The salaried employees of an entity are entitled to 20days paid leave each year. the entitlement accrues evvenly over the year and unused leave may be carried forward for one year. The holiday year is the same as the financial year. At 31 Dec 20X4, the entity had 2200 salaried emlpoyees and the average unused holiday entitlement was 4days per employee. Approximately 6% of employees leave without taking their entitlement and there is no cash payment when an employee leaves in respect of holiday entitlement. There re 255 working days in the year and the total annual salary cost is $42M. No adjustment has been made in the FS for the above and there was no opening accrual required for holiday entitlement.
Required: Discuss with suitable computations, how the leave that may be carried forward is treated in the FS for the year ended 31.12.20X4.
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