Accrued Vacation
Accounting Dictionary
Accrued Vacation
Future compensated absences are accrued if all of the criteria for accrual are satisfied. The criteria include (1) the employee has performed the services to which the vacation or sick pay is attributable; (2) the liability is vested or accumulated; (3) payment is probable; and (4) the amount can be reasonably estimated. The accrual of nonvesting but accumulating sick pay is not required.