In accordance with AASB 124, the categories of compensation to key management personnel required to be disclosed include:
A) Short-term employee benefits.
B)Post-employment benefits
C) Long-term loans.
D)All of the given answers and short-term employee benefits.
E)Post-employment benefits.

Question

In accordance with AASB 124, the categories of compensation to key management personnel required to be disclosed include:
A) Short-term employee benefits.
B)Post-employment benefits 
C) Long-term loans.
D)All of the given answers and short-term employee benefits.
E)Post-employment benefits.

Quizplus · Accepted Answer

However, the options provided in the question do not fully align with the AASB 124 requirements. The closest answer would be "All of the given answers" if we assume that "long-term loans" is a misinterpretation of "other long-term benefits". But it's important to note that the actual AASB 124 standard also includes termination benefits and share-based payment as categories of compensation that need to be disclosed.
1. Short-term employee benefits: These are forms of compensation that are payable within twelve months after the end of the period in which the employees render the related service. Examples include salaries, wages, social security contributions, paid annual leave, paid sick leave, profit-sharing, and bonuses (if payable within twelve months of the end of the period).
2. Post-employment benefits: These benefits are payable after the completion of employment. Examples include pensions, other retirement benefits, post-employment life insurance, and post-employment medical care.
3. Other long-term benefits: These benefits are not due to be settled within twelve months after the end of the period in which the employees render the related service. Examples include long-service leave, jubilee or other long-service benefits, long-term disability benefits, and, if they are not payable wholly within twelve months after the end of the period, profit-sharing, bonuses, and deferred compensation.
4. Termination benefits: These are benefits that are payable as a result of either: (a) an entity’s decision to terminate an employee’s employment before the normal retirement date, or (b) an employee’s decision to accept voluntary redundancy in exchange for those benefits.
5. Share-based payment: This is compensation that takes the form of shares or share options, or other equity instruments of the entity or the parent of the entity, or is otherwise based on the price of the entity’s shares or other equity instruments of the entity.
The third option provided in the question, "Long-term loans," is not explicitly listed as a category of compensation that must be disclosed under AASB 124. However, if such loans are provided to key management personnel on terms that are not consistent with market terms, they may need to be disclosed as related party transactions.
Therefore, the correct answer from the given options would be a combination of 1 (Short-term employee benefits), 2 (Post-employment benefits), and 5 (Share-based payment). Option 3 (Long-term loans) is not a standard category required for disclosure under AASB 124, but related party transactions including loans would still need to be disclosed if they are applicable.

In Accordance with AASB 124, the Categories of Compensation to Key