I recently started working for a small business that grants vacation time on an upfront basis. e.g. - Jan 1 each employee has 2 weeks (80 hrs) of vacation available and can use it starting Jan 1.

The question is, can the company list that entire 2 weeks per employee as an liability that is reduced with the use of vacation time by employees, or does the vacation accrual have to be developed on a monthly or payperiod basis?

James Gooding