Sec. 32.24  Compensated absences.

    (a) Companies shall record a liability and charge the appropriate 
expense accounts for compensated absences (vacations, sick leave, etc.) 
in the year in which these benefits are earned by employees.
    (b) With respect to the liability that exists for compensated 
absences which is not yet recorded on the books as of the effective date 
of this part, the liability shall be recorded in Account 4120, Other 
Accrued Liabilities, with a corresponding entry to Account 1439, 
Deferred Charges. This deferred charge shall be amortized on a straight 
line basis over a period of ten years.
    (c) Records shall be maintained so as to show that no more than ten 
percent of the deferred charge is being amortized each year.