When determining the liability for compensated absences, the amount should be based on 1. an average of the last three year's rates of pay when employees earn the right to the compensated absences. 2. the current or future rates (if known) of pay expected to be paid when employees use compensated time. 3. the PV (present value) of the amount expected to be paid in future periods.

When determining the liability for compensated absences, the amount should be based on 1. an average of the last three year's rates of pay when employees earn the right to the compensated absences. 2. the current or future rates (if known) of pay expected to be paid when employees use compensated time. 3. the PV (present value) of the amount expected to be paid in future periods.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter19: Accounting For Post Retirement Benefits

Section: Chapter Questions

Problem 3C

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