Liabilities · Long-Term Liabilities
2220 Compensated Absences
Since 2026.03
- What it is
- Compensated absences payable represents long-term accrued leave obligations (vacation/comp time) expected to be paid in future periods.
- Accounting standard
- Compensated absences are recognized when earned and when they meet the criteria for accrual; amounts expected to be liquidated with current resources may be reported as current, with the remainder as long‑term.
- Accounting note
- Use HR/payroll system reports to estimate accrued leave balances; apply payout rules and rates. Separate current portion vs long-term portion where applicable.
- Reporting note
- For governmental funds, only the portion due and payable may appear; government‑wide/proprietary statements report the full liability. Ensure consistent methodology year to year.
- Examples
- Accrued vacation payable; accrued comp time payable; leave payout liability.
- Do not use for
- Routine payroll cycle accruals (2010).
Where it reports on the Cities FTR
| Fund type | FTR line |
|---|---|
| Governmental funds | Form 40 R23 Compensated AbsencesLT_OBLIG_COMP_ABS Government-wide item; record in the conversion ledger (980). |
| Government-wide ledger (980) | Form 40 R23 Compensated AbsencesLT_OBLIG_COMP_ABS Government-wide item; record in the conversion ledger (980). |
| Enterprise funds (water example) | Form 38 R45 Compensated AbsencesENT_COMP_ABS_NET Enterprise or internal service column. |
| Internal service funds | Form 38 R45 Compensated AbsencesINT_SERV_COMP_ABS_NET Enterprise or internal service column. |
| Fiduciary funds (pension trust example) | Form 39 R24.7 Other Long Term LiabilitiesPEN_OTHER_EE_BEN_TRUST_OTHR_LT_LIAB Column for the trust or custodial fund type. |
Enterprise placement is shown for a water fund; other enterprise funds use the same line on their own form. Check any combination in the FTR finder.