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AASB 119 was reissued in September 2011. Inter alia, the revisions include a modified definition of short-term employee benefits - those benefits that are expected to be settled wholly within 12 months after the end of the annual reporting period in which the employees render the related service. In contrast, the superseded version of AASB 119 defined short-term employee benefits as those that are due to be settled within 12 months after the end of the period in which the employees render the related service.
The following observation was made regarding these changes: 'The revisions to AASB 119 are expected to have the most impact on employers in relation to the measurement of annual leave liabilities in respect of employees ...' ('Amendments to AASB 119 - Employee Benefits: The Implications for Employers', Deloitte, 2012, p. 2).
Question 1: What is the discount rate specified in AASB 119 for employee benefits that are expected to be settled wholly before 12 months after the end of the reporting period in which the relevant services are rendered?
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