Morgan, a public limited company, has 1,000 salaried employees who are entitled to 25 days paid leave each year. The entitlement accrues evenly over the year and unused leave may be carried forward for one year. The holiday year runs from 1 January to 31 December. At 31 December 2020, the average unused holiday entitlement was five days per employee. There are 252 working days in the year and the total annual salary cost is BD50 million. Approximately 4% of employees leave without taking their entitlement and there is no cash payment when an employee leaves in respect of holiday entitlement. There was no opening accrual required for holiday entitlement. Which statement is correct in relation to this unused holiday for the year ended 31 December 2020? This is a non-accumulating paid absence. Therefore, no expense should be recognised for it in the year ended 31 December 2020. An expense of BD950,000 should be recognised in the year ending 31 December 2021 when the absence actually occurs. An expense and accrual of BD990,000 should be recognised in the year ended 31 December 2020. An expense and accrual of BD950,000 should be recognised in the year ended 31 December 2020