Annette French joined Paris Ltd on 1 July 2011 as a bookkeeper. She is the only permanent employee of Paris Ltd. On 30 June 2012 her salary was $35,000. Annette French's salary is expected to increase with inflation at a rate of 3%. Paris Ltd provides long service leave entitlement of 13 weeks after 15 years of service. A pro rata payment is made after 10 years of service. The probability of Annette French staying in the job until the obligation vests is 35%.
Other information:

What is the long service leave liability (to the nearest $) of Paris Ltd as at 30 June 2012?

Question

Annette French joined Paris Ltd on 1 July 2011 as a bookkeeper. She is the only permanent employee of Paris Ltd. On 30 June 2012 her salary was $35,000. Annette French's salary is expected to increase with inflation at a rate of 3%. Paris Ltd provides long service leave entitlement of 13 weeks after 15 years of service. A pro rata payment is made after 10 years of service. The probability of Annette French staying in the job until the obligation vests is 35%.
Other information:

What is the long service leave liability (to the nearest $) of Paris Ltd as at 30 June 2012?

Quizplus · Accepted Answer

The Answer of Annette French joined Paris Ltd on 1 July 2011 as a bookkeeper. She is the only permanent employee of Paris Ltd. On 30 June 2012 her salary was $35,000. Annette French's salary is expected to increase with inflation at a rate of 3%. Paris Ltd provides long service leave entitlement of 13 weeks after 15 years of service. A pro rata payment is made after 10 years of service. The probability of Annette French staying in the job until the obligation vests is 35%.
Other information:

What is the long service leave liability (to the nearest $) of Paris Ltd as at 30 June 2012?

Annette French Joined Paris Ltd on 1 July 2011 as a Bookkeeper