Recognizing Employee Training/Examination Costs

[ivc303]

Hi all,

Employee pays for the course on 1/31/2020
Exam passed/ course completed on 4/30/2020
Cost reimbursed to the employee on 5/15/2020

Just wondering if my company has policy that only reimburses the training/exam cost to employee only if she passes/completes the course, then for above scenario, is it proper recognize the cost to the company's P&L in the Apr2020 period, instead of the Jan2020 period? Or can I even recognize it in the P&L in May2020 period?

Thanks,

 

[kirby]

A liability to pay is created at 4/30/20 in theory. In practical terms the student has to inform the Company and probably provide proof so that takes time. Recognizing it later (in May for example) is no big deal unless the costs were huge and material to the financial statements.

 

[ivc303]

A liability to pay is created at 4/30/20 in theory. In practical terms the student has to inform the Company and probably provide proof so that takes time. Recognizing it later (in May for example) is no big deal unless the costs were huge and material to the financial statements.

Thanks.