What is the difference between accumulating and non accumulating sick leave?
Before differentiating Accumulating And Non Accumulating Sick Leave, let us see what are actually they. Accumulating sick leave may be carried forward to a future period if the employee has not taken the leave in the current period. Non-accumulating sick leave may not be carried forward to a future period. A liability must be recognized for accumulating sick leave when the employee renders services that increase the entitlement.
The liability is measured as the amount that the entity expects to pay. If the leave is non-vesting, the amount recognized is affected by the probability that the leave will be taken.