FASB Emerging Issues Task Force Addresses Sabbatical Leave
April 4, 2006
At its March 2006 meeting, the Financial Accounting Standards Board's Emerging Issues Task Force reached tentative conclusions concerning accounting for sabbatical leave or other similar benefit arrangements. The task force's discussion focused on whether, pursuant to paragraph 6(b) of FASB Statement No. 43, sabbatical leave owed to an employee accumulates. In Statement No. 43, accumulate means that earned but unused rights to compensated absences may be carried forward to one or more periods subsequent to that in which they are earned, even though there may be a limit to the amount that can be carried forward.
The scope of the task force issue is limited to those arrangements under which the sabbatical or other similar benefit arrangement is unrestricted, meaning that the employee is not required to perform any direct of indirect services for or on behalf of the entity during the absence. The task force reached a consensus that an employee's right to a compensated absence under a sabbatical or other similar benefit arrangement accumulates. Therefore, assuming all of the conditions of paragraph 6 of Statement 43 are met, the compensation cost associated with a sabbatical or other similar benefit arrangement should be accrued over the requisite service period.
FASB is accepting written responses until May 4. Comments will be considered by the task force at the June 14-15 EITF meeting. NACUBO encourages interested members to comment directly to FASB and copy NACUBO.
NACUBO contact: Sue Menditto, director, accounting policy.
- Financial Responsibility Scores Released for FY13
- IRS Publishes Guidance on "Cadillac" Health Coverage
- 2014 NACUBO-Commonfund Study of Endowments Now Available Online
- ON-DEMAND: How to Build, Develop, and Support a Compliance Program at Your Institution
- ON-DEMAND: Strategic Tuition Assessment and Tuition Restructuring
- ON-DEMAND: Are Shared Services Right for Your Organization – The KU Journey
- ON-DEMAND: VIRTUAL: 2014 Annual Meeting
- ON-DEMAND: VIRTUAL: Student Financial Services Conference
- ON-DEMAND: VIRTUAL: Higher Education Accounting Forum
- A Guide to College and University Budgeting: Foundations for Institutional Effectiveness, 4th ed. - by Larry Goldstein
- NACUBO's Guide to Unitizing Investment Pools - by Mary S. Wheeler
- Managing and Collecting Student Accounts and Loans - by David R. Glezerman and Dennis DeSantis