GASB issued guidance Thursday, June 16, on compensated absences, enhancing recognition and measurement requirements, and refining related disclosure requirements.
Statement No. 101 updates how state and local governments process paid leave benefits for employees. Employee benefits have evolved over the years, particularly with the establishment of a paid-time-off model that packages vacation and sick leave, GASB noted.
The new guidance aligns recognition and measurement guidance for all types of compensated absences under a unified model that will result in governments recognizing a liability that more appropriately reflects when they incur an obligation for compensated absences.
The new requirements are effective for fiscal years beginning after Dec. 15, 2023. FASB recommends implementing the requirements sooner. Read more.