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How should heather record and measure liability

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Question - The Heather Company's fiscal year ends on June 30. Its employees (with at least three months of experience) are entitled to 12 paid sick days annually for each calendar year beginning on January 1. An employee not taking his/her earned sick days would receive payment thereon on December 31 of that year. How should Heather record and measure such a liability as of June 30th? What is issue, rules, apply and conclusion for the case?

Reference no: EM132628641

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