Other Deferred Compensation Benefits Flashcards
1
Q
Would you generally accrue sick pay?
A
No because it usually does not vest
2
Q
If there is a deferred compensation arrangement to pay 100,000 in years 6, 7, and 8 after the employee is employed at the end of year 5, how should the compensation expense associated be recorded?
A
$60,000 in each of years 1 through 5 b/c the cost of benefits should be recognized over that required period of service (5 years)
