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Question: Employee Benefits
On the 1st of July 2010, Swordsy's Caravan Park has 12 employees working for them. Three years later these 12 employees are all still employed. On the 1st of July 2012 Swordsy's Caravan Park hires another 15 employees but of these, five are no longer working for Swordsy's Caravan Park on the 30th June 2013.
Swordsy's Caravan Park has long service leave (LSL) arrangements in place for its staff. Swordsy's Caravan Park provides 13 weeks' leave after an employee has worked 10 years for the company.
Additional Information, current at the 30 June 2013 is as follows:
Corporate Bond Rates
Maturing in (years)
Rate as at 1 July 2012
Rate as at 30 June 2013
7
4%
6%
8
5%
8%
9
10
10%
Required: What is the total LSL provision as at 30 June 2013? Please show all workings.
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