ACC 304 Course Great Wisdom / tutorialrank.com ACC 304 Course Great Wisdom / tutorialrank.com | Page 311
54. The amount of the liability for compensated absences
should be based on
1. the current rates of pay in effect when employees earn the
right to compensated absences.
2. the future rates of pay expected to be paid when employees
use compensated time.
3. the present value of the amount expected to be paid in future
periods.
a. 1.