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.
- Some Cash Management Changes Apply to All Institutions
- NACUBO Summarizes Regulations on Banking, Processing Relationships
- Education Funding Depends on Devil in the Details
- 2016 Intermediate Accounting and Reporting - Winter
January 25-26, 2016
- 2016 Facilities and Administrative Rates - Long Form
January 25-26, 2016
- ON-DEMAND: Understanding ED's New Cash Management Rules
- ON-DEMAND: A Financially Sustainable Approach to Innovate Academic Programs
- ON-DEMAND: Legislative Lunchcast: A 30-Minute Washington Update from NACUBO
- ON-DEMAND: Developing Your Campus Distance Learning Strategy
- ON-DEMAND: VIRTUAL: 2015 Annual Meeting
- ON-DEMAND: NACUBO Live!: CBO Speaks
- ON-DEMAND: A Just-in-Time Webcast to Explain FASB’s NFP Reporting Proposal
- ON-DEMAND: Decoding ED's Cash Management Proposal
- 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