Employee Benefits and Share Based Payment

Running head: EMPLYEE BENEFITS AND SHARE BASED PAYMENT
EMPLYEE BENEFITS AND SHARE BASED PAYMENT
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EMPLYEE BENEFITS AND SHARE BASED PAYMENT1
Answer to Question 1
Policy for Employee Benefits
In the basis of the annual report of Woolworths Ltd for the year 2018, the company
used the followings accounting policy to employee benefits: -
 Company recognises the annual leaves or long service leaves as the employee benefit
liability.
 The company settled the liability within the 12 month using the remuneration rate at
the nominal rate.
 The employee benefit liability, those are not settled within the year are calculated at
present value in the basis of the future estimated cash out flow by considering period
of service provided by the firm till the reporting date.
AASB 119
While, AASB 119 states that the following: -
 The employee benefits liabilities should be recognised as the long term liability in
balance sheet for long service leave, which are not be paid within the 12 months and
not be valued at present value
 The current service cost and actual loss and gain should be shown in profit and loss
account.
 In addition, the assets reserved for employees benefit must be recorded at fair value
and return on such asset record in P/L Account as income (Aasb, 2019).
The above comparison shows that the Woolworths Ltd is fully followed the requirement
of the AASB 119 in respect of employee benefit policy.

EMPLYEE BENEFITS AND SHARE BASED PAYMENT2
Answer to question 2: -
Assumptions for employee benefit
The Woolworths Ltd made the following assumptions for the employee benefit as per
the annual report of 2018: -
 The figure of employee benefits is consider in the estimated future salary as well
as wages level, employee experience and the period of services.
 The assumption are reviewed in periodic basis, the expected changes in the
assumption is not consider to have impact of material.
Assumption are made by the Woolworths Ltd are that the employee benefits are
calculated in the basis of future salary, experience and period of services provided by the
employee (Woolworthsgroup, 2019). The company also reviews the assumption in periodic
basis and changes in assumption are not consider as material impact.
Answer to question 3: -
Types of employee benefits
The Woolworths Ltd reported the following three expenses from the continuing
operation in the annual report of 2018: -
 Remuneration and on cost
 Superannuation expenses
 Share- based payments expense
The Woolworths Ltd reported the $ 7581 million as the employee benefits from the
continuing operation for the remuneration and on cost. Secondly, the superannuation expense
$ 575 million from the continuing operating as the employee benefits is reported in the year