Vacations, Holidays, and Other Short-ter

Vacations, Holidays, and Other Short-term Compensated Absences

B10 Accumulating paid absences are those that are carried forward and can be used in future periods if the current period’s entitlement is not used in full. AASB 119 Employee Benefits requires that an entity measure the expected cost of and obligation for accumulating paid absences at the amount the entity expects to pay as a result of the unused entitlement that has accumulated at the end of the reporting period. That principle is also applied at the end of interim financial reporting periods. Conversely, an entity recognises no expense or liability for non-accumulating paid absences at the end of an interim reporting period, just as it recognises none at the end of an annual reporting period.