How should employers recognize employee benefit plans that do NOT accumulate?

Question

Quizplus · Accepted Answer

Employee benefit plans that do NOT accumulate should be recognized when the event occurs to obligate the company to provide the benefit. Examples of such benefits include sick leave, vacation pay, and bonuses that are paid solely at the discretion of the employer. These benefits do not vest over time and are not guaranteed to employees, so recognizing them when the obligation arises is the most appropriate accounting treatment.

How Should Employers Recognize Employee Benefit Plans That Do NOT