Crystal People Limited has a total headcount of around 1,000 employees during the financial year 2024-2025. As per the company's leave policy,…

(i) Crystal People Limited will recognise a liability in its books to the extent of 5 days of PL for 200 employees and 10 days of PL for remaining 800 employees and 2 days of SL for 200 employees and 5 days of SL for remaining 800 employees in its books as an unused entitlement that has accumulated in 2024-2025 as short-term compensated absences. Alternatively, it may be assumed that number of leaves carried forward in the next year will be availed in entirety. In such a case, Crystal People Limited will recognise a liability in its books to the extent of 10 days of PL for 200 employees and 10 days of PL for remaining 800 employees and 5 days of SL for 200 employees and 5 days of SL for remaining 800 employees in its books as an unused entitlement that has accumulated in 2024-2025 as short-term compensated absences. (ii) In terms of the profit-sharing plan, although the company had initially planned to distribute 4% of its - 5,000 crore profit, due to expected employee turnover, the actual payout is estimated to be 3.5%, amounting to 175 crores. Since there is a clear obligation and the payout can be reliably estimated, this amount should be recognized as an employee benefit expense in the profit and loss account for the year, with a corresponding provision shown under current liabilities. (iii) When an employee has rendered service to an entity during a period, the entity shall recognise the contribution payable to a defined contribution plan in exchange for that service. Under Ind AS 19, the amount of 200 crores will be recognised as a liability (accrued expense), after deducting any contribution already paid (250crores -50 crores) and an expense in the statement of profit and loss.