Question 3 Employee Benefits (16 marks) Part A (8 marks) The employees of Brown Ltd are entitled to 13 weeks' long service leave after 15 years continuous service. The following information has been compiled for calculating the liability for long-service leave as at 30 June 2018 Aggregate projected Probability of becoming unconditionally Number of Aggregate annual Years of service as at 30 June 2018 employees as at 30 June 2018 annual entitled to salaries for salaries when leave is due long-service leave 2017-2018 0.35 000 0S0 000 0t6 91 Total 000 08 00' 000 08 $630 000 The long-service leave liability reported for the year ended 30 June 2017 was $22 360. $1 020 000 The following government and corporate bond rates have been identified. Government bond rate Period to maturity Corporate bond rate (%) % 3 years 4 years 11 years 16 years 6 REQUIRED: Prepare the general journal entries for the year ended 30 June 2018 to provide for long- service leave for employees in accordance with the requirements of AASB 119. Show all calculations. Round to the nearest $ amount. Part B (8 marks) Briefly explain the situations when the recognition of liabilities or assets for defined contribution and defined benefit post-employment plans is required in accordance with AASB 119. Question 3 Employee Benefits (16 marks) Part A (8 marks) The employees of Brown Ltd are entitled to 13 weeks' long service leave after 15 years continuous service. The following information has been compiled for calculating the liability for long-service leave as at 30 June 2018 Aggregate projected Probability of becoming unconditionally Number of Aggregate annual Years of service as at 30 June 2018 employees as at 30 June 2018 annual entitled to salaries for salaries when leave is due long-service leave 2017-2018 0.35 000 0S0 000 0t6 91 Total 000 08 00' 000 08 $630 000 The long-service leave liability reported for the year ended 30 June 2017 was $22 360. $1 020 000 The following government and corporate bond rates have been identified. Government bond rate Period to maturity Corporate bond rate (%) % 3 years 4 years 11 years 16 years 6 REQUIRED: Prepare the general journal entries for the year ended 30 June 2018 to provide for long- service leave for employees in accordance with the requirements of AASB 119. Show all calculations. Round to the nearest $ amount. Part B (8 marks) Briefly explain the situations when the recognition of liabilities or assets for defined contribution and defined benefit post-employment plans is required in accordance with AASB 119