Problem
Griffith Ltd pays bonuses to its staff 3 months after year-end, provided profit targets are met and staff remain employed with the company at the time the bonuses are paid. At 30 June 2019 the company determines it has exceeded its profit target for the year, but prefers not to record a liability for bonuses payable until it confirms how many staff continue to be employed with the company in September, given there has been significant variation in turnover rates in recent years.
Task
Indicate whether the proposed approach is acceptable under IAS 19 Employee Benefits.