Floyd Limited prepares its financial statements to 31 December each year. The company has 250 employees, each of whom is entitled to 30 days paid annual leave. The company’s holiday year commences on 1 April and at 31 December 2017 the company’s employees have, on average, each taken 15 days annual leave during the current financial year.

Requirement Assuming an average employee cost of €30,000 per annum and a five-day working week, calculate the provision for outstanding holiday entitlements that should be recognised in the financial statements of Floyd Limited for the year ended 31 December 2017 in respect of the current holiday year.