The company doesn’t pay 13 month or 12 month plus 1 month leave the system is that we got 12 months salaries and 1 of these months will be off so actually we work 11 months we got paid for 12
My question is : since the salaries exist in the PL on a monthly basis an accrual for holiday will not duplicate the expenses ?
or we consider it as unproductivity expense???
In fact you should make sure that the entity does not have any employee costs in the month the employee takes his or her holiday. Therefore you should accrue 1/11th of the holiday expense in each month the employee works as an extra employee cost, and reverse this accrual in the month no service is rendered.