How to Handle Leave Pay Provisions and Accruals

Accounting for leave pay means knowing whether it is a short-term or long-term benefit and whether to use IAS 19 or IAS 37. This article explains, in simple terms, how to classify leave, calculate costs for unused leave days, and record the amounts correctly in financial statements. It also provides examples to help business accountants handle both straightforward leave situations and those with uncertain timing or amounts.