GASB Statement No. 101, Compensated Absences
Friday, June 27, 2025
GASB Statement No. 101, Compensated Absences
CSMFO Professional Standards Committee Highlights
Professional Standards
Committee Highlights
GASB STATEMENT NO. 101, COMPENSATED ABSENCES
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For local governments with a June 30 fiscal year-end, Governmental Accounting Standards Board (GASB) Statement No. 101, Compensated Absences, is required to be implemented for the year ended June 30, 2025. As compensated absences have been redefined to include items such as sick leave, local governments will need to include sick leave in the calculation of the compensated absence liability.
The Government Finance Officers Association (GFOA) has developed a tool to assist members in calculating sick leave as part of the compensated absence liability. The tool contains examples of two approaches to estimate sick leave for the compensated absence liability – the dollars paid approach and the days used approach. Each approach requires local governments to collect data on a representative sample of active employees to determine the number of sick leave dollars paid or sick leave days used in prior years.
GFOA membership is required in order to access the tool on the GFOA website at GASB 101 Compensated Absences Tool – Sick Leave.
If you have questions regarding this topic, contact Donna K. Lee, Chair of the Professional Standards Committee at donna.lee@cityofconcord.org.
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The Professional Standards Committee operates as a technical resource to CSMFO members. The Committee is comprised of municipal and commercial members whose mission is to keep members informed of emerging issues and best practices.
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