An entity is required to recognise a liability for short-term compensated absences that are:

Question

Quizplus · Accepted Answer

Short-term compensated absences that are accumulating and vesting should be recognised as a liability. This includes paid leave such as sick leave and annual leave that accumulates over time and vests with an employee. Non-vesting absences such as maternity leave (which does not vest with an employee) should not be recognised as a liability. Non-accumulating absences, such as bereavement leave, do not create a liability either, as they do not accumulate over time.

An Entity Is Required to Recognise a Liability for Short-Term