Accrued Vacation Pay
Code: 2134
👁 Views: 10
Account Information
| Financial Statement | Statement of Financial Position |
| Normal Balance | Credit |
Definition
Accrued annual vacation pay owed to employees not yet paid.
📐 IFRS vs US GAAP Accounting Treatment
IFRS
IAS 19
Employee Benefits
US GAAP
ASC 710
Compensation - General
❓ Frequently Asked Questions
Q: What is accrued vacation pay?
A: A liability for annual leave earned by employees but not yet taken. Calculated as (usually 30 days per year) times daily salary.
Q: When is accrued vacation pay paid?
A: When the employee becomes entitled to leave and requests it, or upon employee termination (unused vacation is paid out).