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AASB 119 Has Resulted in Many More Companies Recognising Liabilities

Question 53

Multiple Choice

AASB 119 has resulted in many more companies recognising liabilities for employee entitlements.There is evidence that this requirement has the effect of:


A) creating cash reserves from which employee entitlements can be paid in the case of company insolvency.
B) increasing the probability of companies becoming insolvent.
C) reducing the level of employment in Australia.
D) None of the given answers are correct.

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