An entity is required to recognise a liability for short-term compensated absences that are: Select one: a

The correct Answer is a) Accumulated & Vesting.

An entity is equired to recognise a liability for short term compensated absences if the following conditions are met:

1. The employer has an obligation to compensate employees for future absences attributable to the employees for the services they have already provided..
2. The obligation relates to rights that accumulate from period to period.
3. There is a probability that amount will be paid.
4. An estimate can be made for the amount of obligation

The measurement of the liability is driven by whether the obligation is vesting is based on the conditions .If the cash payment is to be made to the employees on leaving the organization then it is vesting & if no cash payment is made to the employee on leaving the organization then it will be a non vesting.

Liability will be recognised when it is vesting.

So the  entity is equired to recognise a liability for short term compensated absences as a Accumlated & Vesting.