When an organisation recognises a provision and related expense for annual leave, and a provision for long-service leave for its employees, the risk to employees that they will not be paid these amounts that have been provided is effectively zero. Is this true or false? Why?

When an organisation recognises a provision and related expense for annual leave, and a provision for long-service leave for its employees, the risk to employees that they will not be paid these amounts that have been provided is effectively zero. Is this true or false? Why?

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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Question

When an organisation recognises a provision and related
expense for annual leave, and a provision for long-service
leave for its employees, the risk to employees that they will
not be paid these amounts that have been provided is
effectively zero. Is this true or false? Why?

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