Cod Ltd has 104 employees, who are each entitled to five working days of paid sick leave for each year. Wages are $222 per day per employee. Unused sick leave may be carried forward for one calendar year. Sick leave is taken first out of the current year’s entitlement and then out of any balance brought forward from the previous year (a last in first out basis). The balance of unused sick leave entitlements at 30 June 20X0 was zero. At 30 June 20X1 the average unused entitlement is 3 days per employee. The entity expects, on the basis of experience that is expected to continue, that 90 employees will take no more than five days of paid sick leave during the year ended 30 June 20X2 and that the remaining employees will take an average of 6days each. Required: Write in the box below the balance of the Provision for Sick Leave account that would be recognised in the financial statements of Cod Ltd for the year ended 30 June 20X1 in accordance with the requirements of AASB 119: Employee Benefits.
Cod Ltd has 104 employees, who are each entitled to five working days of paid sick leave for each year. Wages are $222 per day per employee. Unused sick leave may be carried forward for one calendar year. Sick leave is taken first out of the current year’s entitlement and then out of any balance brought forward from the previous year (a last in first out basis). The balance of unused sick leave entitlements at 30 June 20X0 was zero. At 30 June 20X1 the average unused entitlement is 3 days per employee. The entity expects, on the basis of experience that is expected to continue, that 90 employees will take no more than five days of paid sick leave during the year ended 30 June 20X2 and that the remaining employees will take an average of 6days each. Required: Write in the box below the balance of the Provision for Sick Leave account that would be recognised in the financial statements of Cod Ltd for the year ended 30 June 20X1 in accordance with the requirements of AASB 119: Employee Benefits.
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