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<br />-23- <br />GASB STATEMENT NO. 101, COMPENSATED ABSENCES <br /> <br />The objective of this statement is to better meet the information needs of financial statement users by <br />updating the recognition and measurement guidance for compensated absences. That objective is <br />achieved by aligning the recognition and measurement guidance under a unified model and by amending <br />certain previously required disclosures. <br /> <br />This statement requires that liabilities for compensated absences be recognized for (1) leave that has not <br />been used and (2) leave that has been used, but not yet paid in cash or settled through noncash means. A <br />liability should be recognized for leave that has not been used if (a) the leave is attributable to services <br />already rendered, (b) the leave accumulates, and (c) the leave is more likely than not to be used for time <br />off or otherwise paid in cash or settled through noncash means. Leave is attributable to services already <br />rendered when an employee has performed the services required to earn the leave. Leave that accumulates <br />is carried forward from the reporting period in which it is earned to a future reporting period during which <br />it may be used for time off or otherwise paid or settled. <br /> <br />This statement requires that a liability for certain types of compensated absences —including parental <br />leave, military leave, and jury duty leave—not be recognized until the leave commences. This statement <br />also requires that a liability for specific types of compensated absences not be recognized until the leave <br />is used. This statement also establishes guidance for measuring a liability for leave that has not been used, <br />generally using an employee’s pay rate as of the date of the financial statements. A liability for leave that <br />has been used, but not yet paid or settled should be measured at the amount of the cash payment or <br />noncash settlement to be made. Certain salary-related payments that are directly and incrementally <br />associated with payments for leave also should be included in the measurement of the liabilities. <br /> <br />With respect to financial statements prepared using the current financial resources measurement focus, <br />this statement requires that expenditures be recognized for the amount that normally would be liquidated <br />with expendable available financial resources. <br /> <br />The requirements of this statement are effective for fiscal years beginning after December 15, 2023, and <br />all reporting periods thereafter. Earlier application is encouraged.