Which of the following types of employee benefits are required to be measured at the present value of expected future cash flows?

Question

Quizplus · Accepted Answer

Long service leave is a type of employee benefit that is required to be measured at the present value of expected future cash flows. This is because it is a form of post-employment benefit that employees earn as they work for the organization over a long period of time, and it is expected to be paid out in the future when they retire or resign. Other benefits listed (annual leave, accumulating non-vesting sick leave, and maternity leave) are typically accounted for on an accrual basis as they are earned or incurred, rather than being measured at the present value of future cash flows.

Which of the Following Types of Employee Benefits Are Required