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kiley adams
on Nov 02, 2024

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If the amount paid to the defined contribution fund by an entity during the year is less than the amount payable in relation to service provided by employees, the entity must recognise:

A) an asset for the unpaid contributions.
B) an expense for the unpaid contributions.
C) a liability for the unpaid contributions.
D) a gain for the unpaid contributions.

Defined Contribution Fund

A retirement plan in which the employer, employee, or both make contributions on a regular basis, but future benefits are based on the fund's investment performance.

Unpaid Contributions

Amounts due from members or shareholders for their share in the capital of the company which have not yet been paid.

Entity

Refers to an organization, institution, or being that possesses a separate existence for tax, legal, and accounting purposes.

  • Appraise liabilities and acknowledge commitments associated with employee service.
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EF
Erika FirlotteNov 05, 2024
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