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 recognized as a liability. Accumulating means that the employees are accumulating their entitlement to the absence, while vesting means that they have the right to be paid for the absence even if they leave the company before taking it. Non-accumulating and non-vesting absences do not need to be recognized as a liability.

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