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QUESTION 2 (15 MARKS) RestNow Traders need to create a provision for annual leave pay, as it relates to its employees. The company employees three categories of employees: general workers, line managers and directors. All employees are entitled to 15 days of annual leave per annum. Leave cycles extend over three years. The current leave cycle starts on 1 January 2020 and ends on 31 December 2022. A maximum of 3 days may be carried forward to the next year, during the first and second years of the cycle. Employees may require for a maximum of 7 days to be paid out in cash, in the year that the leave cycle ends. The expected average leave days taken are as follows: Year ended 31 Year ended 31 Year ended 31 December 2020 December 2021 December 2022 General workers 14 days 13 days 14 days Line managers 10 days 10 days 12 days Directors 10 days 11 days 11 days The following gross salaries apply: Year ended 31 December 2020 General workers R200 000 per year per employee Line ers R300 000 per year per employee Directors R400 000 per year per employee Additional notes: . Salaries escalate by 5% every year, for all employee categories; Assume 250 working days per annum; Assume that RestNow Traders has 20 general workers, 10 line managers and 5 directors in service, at all times. MARKS REQUIRED FOR QUESTION 2: 15 a) Calculate the provision for annual leave pay for the year ended 31 December 2022, in terms of IAS19: Employee benefits. Round figures to two decimal places! TOTAL MARKS 15

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