Pipe Fitting Ltd., a publicly traded company, is in negotiations with the union that represents its employees. The union has proposed that the employer fund the difference between payments under the federal Employment Insurance plan and the regular salary of employees on parental leave. If this proposal is approved, which of the following describes when this employee benefit would be recorded as an expense on the income statement?

a) When the employee commences their parental leave
b) As a monthly accrual starting in the year hired
c) When the employee notifies the company that parental leave will be taken
d) When the employee returns to work