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In that case there is something I don't understand. If the company has a debt and an offsetting asset pegged specifically to that use, why does it look bad?

If anything, that should look good: "we owe $X to employees at 0bps interest and we have $X in the bank at 40bps."




It looks bad because they have a large liability on there balance sheet. Also you have to remember that your leave entitlement stays the same if you get promoted/ pay rise so the organisation actually has to pay more then what they've offset




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