At my place of employment payroll and leave follow different calendars. Payroll follows the calendar (jan.-dec.)and leave follows fiscal (jul.-jun.). Our accountant has resolved this by making the leave year for 2015 6mos, and thus bringing it in line with payroll. My position, is that by doing this she is shorting everyone half of their leave accrual for the year. She says no. leave accrues at the same rate so it doesn't matter. Is she correct? Thank you!

Yes..

Seems to be a one time adjustment and only applies for this 6 month period if I read you correctly. The fiscal year and the payroll year will be the same from here out. She is correct as it's the same pay/leave time.

What is it you are losing?

Let's put this in an IR perspective, an employees contract starts on a specific date and entitlements accrue from that date. Yes it is an accounting problem to aline all these liabilities for reporting purposes but the accountant has no authority to vary an employee's contract, written or otherwise without the employee's permission. The fact is that with modern accounting systems, and even spreadsheets, it is no more difficult to calculate entitlements and accrued entitlements for any specific date than any other. This isn't a question of whether the employee ultimately gains or looses but whether an employee can take leave they are entitled to at a specific time. I would say what you have here is an inexperienced and niaive accountant and this person should not be allowed to make arbitrary changes for accounting nicieties.

The next thing that w ill happen is this person will want to have changes to rates of pay aligned to the fiscal year, i say slay the dragon now