PARTA (40 MARKS) ANSWER ALL QUESTIONS QUESTION 1 (25 MARKS) ja) State the main classifications of employee benefits as per MFRS119 Employee Benefits, and provide one (1) example for each classification (4 Marks) (d) Adam is a contract employee of OS Berhad starting from 1/1/2016 whereby the contract's terms indicate that he will receive a lump-sum monetary reward upon the expiry of his 5 years contract The amount is calculated based on 5% of his last drawn salary for each year of service, Adam's annual salary for the first year is RM50,000 The actuarial assumption is that his salary will increase by 10% per annum and the discount rate is 8% (b) Celebrate IK has four employees in its Kuala Lumpur branch. Each employee is entitled to 20 to 35 days of paid annual leave per annum. During the year 2020, employees took a total of 70 days of annual leave. The company has a vesting policy for the annual leave entitlement All annual leave accumulated on 31 December 2020 is expected to be paid by 31 December 2021. The following information is obtained from the payroll records for the year ended 31 December 2020: 0 Calculate the amount of lump-sum payment due to Adam on 1/1/2021 (2 Marks) (6) Prepare the schedule of expense and provisions for liability for 2016 to 2020 (5 Marks) (m) Prepare the relevant accounting entries for the years 2016, 2017, 2018, and 2019 for QS Berhad to record the amount obtained in question d(ii) above. (3 Marks) (Total: 25 Marks) Employee Wage per day Leave taken in 2020 (days) - END OF QUESTION PAPER - Balance of Leave at 1 January 2020 (days) 10 7 8 6 Leave entitlement for 2020 (days) 20 30 35 20 Kasim Qudus Mikael Hamdi RM240 RM320 RM360 RM180 16 16 14 24 Required: Compute the total provision for annual leave liability as of 31 December 2020 (5 Marks) (1) Show a summarised journal entry to record the annual leave expenses and provisions at the end of 2020. (2 Marks) (c) The year 2020 witnessed a decline in the price of equity securities globally, due to the Covid-19 pandemic. As a result, many investment funds made negative returns on investments during this period. Critically discuss how this pandemic affects the wealth of employees and employers by relating your answers with both defined benefit plan and defined contribution plan (4 Marks) PARTA (40 MARKS) ANSWER ALL QUESTIONS QUESTION 1 (25 MARKS) ja) State the main classifications of employee benefits as per MFRS119 Employee Benefits, and provide one (1) example for each classification (4 Marks) (d) Adam is a contract employee of OS Berhad starting from 1/1/2016 whereby the contract's terms indicate that he will receive a lump-sum monetary reward upon the expiry of his 5 years contract The amount is calculated based on 5% of his last drawn salary for each year of service, Adam's annual salary for the first year is RM50,000 The actuarial assumption is that his salary will increase by 10% per annum and the discount rate is 8% (b) Celebrate IK has four employees in its Kuala Lumpur branch. Each employee is entitled to 20 to 35 days of paid annual leave per annum. During the year 2020, employees took a total of 70 days of annual leave. The company has a vesting policy for the annual leave entitlement All annual leave accumulated on 31 December 2020 is expected to be paid by 31 December 2021. The following information is obtained from the payroll records for the year ended 31 December 2020: 0 Calculate the amount of lump-sum payment due to Adam on 1/1/2021 (2 Marks) (6) Prepare the schedule of expense and provisions for liability for 2016 to 2020 (5 Marks) (m) Prepare the relevant accounting entries for the years 2016, 2017, 2018, and 2019 for QS Berhad to record the amount obtained in question d(ii) above. (3 Marks) (Total: 25 Marks) Employee Wage per day Leave taken in 2020 (days) - END OF QUESTION PAPER - Balance of Leave at 1 January 2020 (days) 10 7 8 6 Leave entitlement for 2020 (days) 20 30 35 20 Kasim Qudus Mikael Hamdi RM240 RM320 RM360 RM180 16 16 14 24 Required: Compute the total provision for annual leave liability as of 31 December 2020 (5 Marks) (1) Show a summarised journal entry to record the annual leave expenses and provisions at the end of 2020. (2 Marks) (c) The year 2020 witnessed a decline in the price of equity securities globally, due to the Covid-19 pandemic. As a result, many investment funds made negative returns on investments during this period. Critically discuss how this pandemic affects the wealth of employees and employers by relating your answers with both defined benefit plan and defined contribution plan (4 Marks)