An entity is required to make several estimates when measuring the liability for long service leave. These estimates include:

Question

Quizplus · Accepted Answer

All of the estimates mentioned in options A, B, and C are required to measure the liability for long service leave accurately. The number of employees expected to become eligible for long service leave is critical as it determines the overall liability. Projected wages and salaries at the time of the leave are also relevant as they impact the final amount that the entity will pay out as long service leave. Finally, the timing of the leave is relevant as it determines when the entity will need to make the payment. Therefore, all of the estimates mentioned in options A, B, and C are necessary to measure the long service leave liability.

An Entity Is Required to Make Several Estimates When Measuring