Question 1: (15 Marks) Crystal Ltd, a toy manufacturer, has provided the following employee benefits to its employees (a) Crystal has 200 employees. Each employee earns 10 days of paid vacation per year. Vacation time not taken in the year earned can be carried over to one calendar year. Paid leave is taken first out of the balance brought forward from the previous year and then out of current year's entitlement. At the end of fiscal year 2010, the unused leave days which were carried forward to fiscal year 2011 were on average 2 days per employee. At the end of fiscal year 2011, employees had on average 3 unused leave days which can be carried forward to fiscal year 2012. It is anticipated that employees will take 12 leave days on average in 2012. During 2011, the average salary for employees is $600 per day. Discuss the appropriate accounting treatment for paid vacation leave for the year ended December 31, 2011. Justify your answer based on the relevant HKASs. (5 marks) Crystal Ltd. has a profit-sharing arrangement in which 1% of net profit for the period is payable to its directors. The net profit for 2011 is $5,000,000. Some of the directors will receive the bonus six months after the end of 2011, whereas others would be paid on July 2013 since they joined the company in July of 2011. Crystal Ltd. has the financial year ended December 31, 2011. Discuss the accounting treatment of the profit sharing plan for the year ended December 31, 2011