4. Palermo Ltd has 178 employees, all of whom have worked for the company for the full year ended 31 December 20X6. Each is entitled to 23 days' paid vacation per year, at a rate of 92 per day. Unused vacation is carried forward to the following year. At 31 December 20X6, 159 of the employees have used their full holiday entitlement, and the remaining 19 have 65 days between them to carry forward. Required: How should the expense be recognised in the financial statements of Palermo Ltd for the year ended 31 December 20X6?