The entity shall pay P20,000 per employee upon termination.Problem 19-16 (IFRS)terminate all 200 employees as a result of economic downturna decision to close a factory located in Mindanao andAt the beginning of current year, Oro Company announcedaeHowever, to ensure that the windup of the factory occu-nsmoothly and all pemaining customer orders are completethe entity needs to retain at least 20% of employees unclosure of the factory in eight months.As a result, the entity announced that employees who agreeto stay until the closing of the factory shall receive P60,000payment at the end of eight months in addition to receivingtheir current wage throughout the period of closure insteadof the P20,000.Based on this offer, the entity expected to retain 50 employeesuntil the factory is closed.1. What is the total benefit under the termination plan?a. 6,000,000b. 3,000,000c. 4,000,000d. 8,000,0002. What is the termination benefit?a. 4,000,000b. 3,000,000c. 6,000,000d. 2,000,0003. What is the short-term employee benefit?a. 2,000,000b. 3,000,000c. 4,000,000d.

Termination benefits are compensation paid by the company to employees on cessation of employment…

At the beginning of current year, Oro Company announced a decision to close a factory located in Mindanao and Problem 19-16 (IFRS) terminate all 200 employees as a result of economic downt The entity shall pay P20,000 per employee upon terminati However, to ensure that the windup of the factory oce smoothly and all gemaining customer orders are complete the entity needs to retain at least 20% of employees un closure of the factory in eight months. As a result, the entity announced that employees who agr to stay until the closing of the factory shall receive P60,000 payment at the end of eight months in addition to receivine their current wage throughout the period of closure instead of the P20,000. Based on this offer, the entity expected to retain 50 employees until the factory is closed. 1. What is the total benefit under the termination plan? a. 6,000,000 b. 3,000,000 c. 4,000,000 d. 8,000,000 2. What is the termination benefit? a. 4,000,000 b. 3,000,000 c. 6,000,000 d. 2,000,000 3. What is the short-term employee benefit? a. 2,000,000 b. 3,000,000 c. 4,000,000 d.

At the beginning of current year, Oro Company announced a decision to close a factory located in Mindanao and Problem 19-16 (IFRS) terminate all 200 employees as a result of economic downt The entity shall pay P20,000 per employee upon terminati However, to ensure that the windup of the factory oce smoothly and all gemaining customer orders are complete the entity needs to retain at least 20% of employees un closure of the factory in eight months. As a result, the entity announced that employees who agr to stay until the closing of the factory shall receive P60,000 payment at the end of eight months in addition to receivine their current wage throughout the period of closure instead of the P20,000. Based on this offer, the entity expected to retain 50 employees until the factory is closed. 1. What is the total benefit under the termination plan? a. 6,000,000 b. 3,000,000 c. 4,000,000 d. 8,000,000 2. What is the termination benefit? a. 4,000,000 b. 3,000,000 c. 6,000,000 d. 2,000,000 3. What is the short-term employee benefit? a. 2,000,000 b. 3,000,000 c. 4,000,000 d.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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