| Paragraph
Number |
Issued:
November, 1980
|
| 1 | Alternatives prior to statement No. 43 | |
| a. | Cost accrued over some period before payment | |
| b. | Cost recognized when paid | |
| 2 | Does not apply to: | |
| a. | Severance or termination pay | |
| b. | Past retirement benefits | |
| c. | Deferred compensation | |
| d. | Stock or stock opinions issued to employees | |
| e. | Other long-term fringe benefits such as group insurance or long-term disability pay | |
| f. | Interim period allocation of compensated absences | |
| 6 | An employer shall accrue a liability for employees' compensation for future absences if all of the following conditions are met: | |
| a. | The employer's obligation relating to employees' rights to receive compensation for future absences is attributable to employees' services already rendered. | |
| b. | The obligation relates to rights that vest or accumulate. | |
| c. | Payment of the compensation is probable, and | |
| d. | The amount can be reasonably estimated. | |
| If (a), (b) and (c) are met, and a liability is not accrued because condition (d) is not met, that fact shall be disclosed. | ||
| 7 | Employer is not required to accrue a liability for nonvesting accumulating rights to receive sick pay benefits (Reason: The amounts involved generally would not be material and a lower degree of reliability of estimates of future such pay and the cost of making and evaluating those estimates do not justify a requirement for such an accrual.) | |
| 8 | Effective Date: For fiscal years beginning after December 15, 1980, with earlier application encouraged. | |
| Retroactive application required: | ||
| In the year that this statement is first applied, the financial statements shall disclose the nature of any restatement and its effect on income before extraordinary items, net income and related per share amounts for each year restated. | ||