Grable Computing Services develops and markets commercial software for home computers. Three situations that involve compensation questions for Gaylord's employees are described below:

1. Grable compensates employees at their regular pay rate for time absent for military leave, maternity leave and jury duty. Employees are allowed a predetermined amount of time for each type of absence.

2. Members of the new product development team are eligible for 3 months' paid sabbatical leave every four years. Five members of the team have just completed their fourth year of participation. Each of the five will be paid 40 hours per week x 12 weeks x their regular pay rate for the sabbatical period.

3. Company policy permits employees to have four paid sick days each year. Unused sick days can accumulate and can be carried forward to future years.

Required:

a. What are the conditions that require Grable to accrue an expense and related liability for employee compensation for future absences? (Cite all references used including url or page number.)

b. For each of the three situations listed, indicate whether (or not) Grable should record an year-end accrual of an expense and liability. Clearly state why (or why not).

c. Use complete sentences, check your grammar and spelling.