GASB 101 Webinar (07.22.25)-GASB 101 Webinar - 072225

GASB 101 Webinar - 072225 - PowerPoint

Pdf Summary

GASB Statement 101 updates guidance on accounting for compensated absences and is effective for the 2024–25 fiscal period (already incorporated into the Accounting Manual). It applies a single, uniform set of criteria to all leave types (e.g., vacation, sick leave, PTO) and introduces a “more likely than not” threshold (50% or greater) for recognizing a liability. Amounts are reported on the Schedule of Long-Term Liabilities and require note disclosure.<br /><br />A compensated absence is leave for which employees may receive cash when taking time off, cash payments for unused leave upon termination, or noncash settlements (such as conversion to defined benefit postemployment benefits). A compensated absences liability is recognized for unused leave that is attributable to services already rendered, accumulates, and is at least 50% likely to be used for time off, paid out in cash, or otherwise settled (including noncash means).<br /><br />Items excluded from the liability include leave that does not roll over each year, unlimited leave programs, and paid absences triggered by sporadic events (parental, military, jury duty, bereavement) unless the leave has commenced. FMLA is excluded, and PFMLA is excluded unless the employer is self-insured and the leave has commenced. Future holiday pay taken on fixed dates (e.g., Christmas) is also excluded.<br /><br />The liability should include certain salary-related payments that are directly and incrementally connected to leave payments and measured using rates in effect at the financial statement date. Included are payroll taxes (employer FICA), HSA/FSA contributions, and defined contribution pension and OPEB contributions. Excluded are defined benefit pension/OPEB contributions (e.g., DRS plans) and employer healthcare contributions.<br /><br />The presentation also outlines practical steps for calculating the liability, including reviewing leave usage history, using a liability tool, using year-end sick leave balance reports, and determining average rates of pay.

Keywords

GASB Statement 101

compensated absences accounting

2024–25 fiscal year effective date

more likely than not threshold

leave liability recognition criteria

Schedule of Long-Term Liabilities reporting

note disclosure requirements

excluded leave types (unlimited, non-accumulating, sporadic events)

salary-related payments included (FICA, HSA/FSA, DC pension/OPEB)

liability calculation steps (usage history, sick leave reports, average pay rates)