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City of Elk River <br />Emerging Issues <br />Accounting Standard Update — GASB Statement No. 101— Compensated Absences (Continued) <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. <br />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 />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 <br />liquidated with expendable available financial resources. <br />This Statement amends the existing requirement to disclose the gross increases and decreases in a <br />liability for compensated absences to allow governments to disclose only the net change in the liability <br />(as long as they identify it as a net change). In addition, governments are no longer required to disclose <br />which governmental funds typically have been used to liquidate the liability for compensated absences. <br />GASB Statement No. 101 is effective for reporting periods beginning after December 15, 2023. Earlier <br />application is encouraged. <br />Information provided above was obtained from www.gasb.org. <br />W. <br />