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 4130. Other
   current  liabilities,  with  a  corresponding  entry  to Account 1438,
   Deferred  maintenance,  retirements  and  other 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.

   [ 51 FR 43499 , Dec. 2, 1986, as amended at  67 FR 5679 , Feb. 6, 2002]