Under GAAP, companies do not have to accrue any liabilities for such "other post-employment benefits" as medical insurance, until employees actually retire.

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Under GAAP, companies are required to accrue liabilities for "other post-employment benefits" such as medical insurance over the employees' working period, and not just when they retire. This accrual is based on actuarial estimates and assumptions to determine the amount that needs to be set aside to fund these benefits.

Under GAAP, Companies Do Not Have to Accrue Any Liabilities