Sick leave entitlements should be reflected as a liability in accordance with AASB 119 when:

Question

Quizplus · Accepted Answer

According to AASB 119, accumulating sick leave which is vesting should be reflected as a liability in the financial statements. This means that sick leave entitlements that employees have earned and can use in the future should be accounted for as a liability. Non-accumulating sick leave or accumulating sick leave that is non-vesting does not need to be recognized as a liability. Therefore, the correct choice is B.

Sick Leave Entitlements Should Be Reflected as a Liability in Accordance