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The employer has unpaid contributions outstanding,should it be treated as a current liability or disclosed in the notes and why?
Thanks
contributions is always in the plan assets, here we have $6m unpaid therefore we deduct that off from the balancing figure so that when you reconcile your net obligations they both match.
but what do we do with the unpaid contributions,is it ok to treat them separately as a current liability?
the qs im talking abt is part bThanks for help 🙂
Do I not remember that the printed solution explains that unpaid contributions are not recognised within the employee benefit calculations?
Yes i know that
But in part b it says where the unpaid cont should come and the answer is that disclose in the notes,shudnt it be treated as curnt liability?Im not alking abt the calculations,its abt part b
Thanks
No, it’s not a current liability until the payment is declared and recognised as an obligation. If there is simply an amount due to be paid but has not yet been declared as payable, then it isn’t an obligation so not a liability so neither current nor long term
@mikelittle said:
Do I not remember that the printed solution explains that unpaid contributions are not recognised within the employee benefit calculations?Send me the printed solution please
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