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Unformatted text preview: illness, vacation, or holidays. A liability is accrued for compensation for future absences if all of the following criteria are satisfied: *Employee services have already been performed *Rights have already been vested *There is probable payment *The amount is subject to reasonable estimation. If the amount is not determinable, accrual is not possible, but footnote disclosure should be given. Sick leave is not accrued because sick leave benefits are not considered compensation until they are used when an employee is ill, not when it is accumulated. GASB 16 also requires salary-related payments to be accrued which include employers share of social security taxes, employers share of Medicare taxes, and employers contributions to retirement plans. Compensated absences are currently being accounted for in the General Long Term Debt Account Group....
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This note was uploaded on 07/10/2011 for the course BUSINESS 450 taught by Professor Bayer during the Spring '11 term at Limestone.
- Spring '11