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<br /> <br />Future Accounting Standard Changes (Continued) <br /> <br />GASB Statement No. 101 - Compensated Absences <br /> <br />Summary <br /> <br />The objective of this Statement is to better meet the information needs of financial statement users by updating the <br />recognition and measurement guidance for compensated absences. That objective is achieved by aligning the recognition <br />and measurement guidance under a unified model and by amending certain previously required disclosures. <br /> <br />This Statement requires that liabilities for compensated absences be recognized for (1) leave that has not been used and <br />(2) leave that has been used but not yet paid in cash or settled through noncash means. A liability should be recognized <br />for leave that has not been used if (a) the leave is attributable to services already rendered, (b) the leave accumulates, and <br />(c) the leave is more likely than not to be used for time off or otherwise paid in cash or settled through noncash means. <br />Leave is attributable to services already rendered when an employee has performed the services required to earn the <br />leave. Leave that accumulates is carried forward from the reporting period in which it is earned to a future reporting <br />period during which it may be used for time off or otherwise paid or settled. In estimating the leave that is more likely than <br />not to be used or otherwise paid or settled, a government should consider relevant factors such as employment policies <br />related to compensated absences and historical information about the use or payment of compensated absences. <br />However, leave that is more likely than not to be settled through conversion to defined benefit postemployment benefits <br />should not be included in a liability for compensated absences. <br /> <br />This Statement requires that a liability for certain types of compensated absences —including parental leave, military <br />leave, and jury duty leave—not be recognized until the leave commences. This Statement also requires that a liability for <br />specific types of compensated absences not be recognized until the leave is used. <br /> <br />This Statement also establishes guidance for measuring a liability for leave that has not been used, generally using an <br />employee’s pay rate as of the date of the financial statements. A liability for leave that has been used but not yet paid or <br />settled should be measured at the amount of the cash payment or noncash settlement to be made. Certain salary -related <br />payments that are directly and incrementally associated with payments for leave also should be i ncluded in the <br />measurement of the liabilities. <br /> <br />With respect to financial statements prepared using the current financial resources measurement focus, this Statement <br />requires that expenditures be recognized for the amount that normally would be liquidated with expendable available <br />financial resources. <br /> <br />Effective Date and Transition <br /> <br />The requirements of this Statement are effective for fiscal years beginning after December 15, 2023, and all reporting <br />periods thereafter. Earlier application is encouraged. <br /> <br />11 216