AASB 119 Employee Benefits prescribes that all obligations relating to wages and salaries,annual leave and sick-leave entitlements,regardless of whether they were expected to be settled within 12 months of the reporting date be measured at nominal (undiscounted)amounts.

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AASB 119 requires short-term employee benefits, like wages, salaries, and accumulating sick and annual leave expected to be settled within 12 months, to be measured at their undiscounted amount. However, long-term benefits or those not expected to be settled within 12 months should be measured at their present value, which involves discounting.

AASB 119 Employee Benefits Prescribes That All Obligations Relating to Wages