Accrued employee leave entitlements
An accrued employee entitlement such as long service leave is a liability of the joining entity according to the accounting standards. For tax purposes, an accrued employee leave entitlement is not deductible in the year it accrues. It will be deductible by the head company when the liability is discharged. Consequently, an adjustment under section 705-80 may be required where the liabilities of a joining entity include such a provision.
ATO law aids
Consolidation Reference Manual
Adjustment at ACA step 2 to allow for timing differences between accounting and tax recognition of liabilities