According to the draft abstract, the issue deals specifically with whether an employee’s right to a compensated absence under a sabbatical leave or other similar benefit arrangement, that requires the completion of a minimum service period and does not increase with additional years of service, accumulates pursuant to FASB statement number 43.
The FASB determined that for arrangements in which the employee continues to be compensated and is not required to perform any duties for the employer, the compensation cost with a sabbatical or other similar benefit arrangement should be accrued over the requisite service period.
The draft abstract with information on how to comment to the FASB is here . Comments must be received by May 4, 2006.
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