Employees of insolvent or potentially insolvent corporations in the society have concerns on the settlement of their outstanding employee benefits under AASB 119 by their employers.

Required

1. Explain how employee benefits arise and what is included as employee benefits under the current standard. (6 marks)
2. Explain three (3) factors why employees of insolvent corporations may face problems in settlement of their outstanding employee benefits.

(6 marks)