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- Title
"Employers' Accounting for Postretirement Benefits Other Than Pensions"-- The FASB Exposure Draft.
- Authors
Danker, Harold; Poccia, Richard J.; Harris, Charles E.; Akresh, Murray S.
- Abstract
Incorporating many of the concepts contained in Statements No. 87 and 88 on employers' accounting for pensions, the Financial Accounting Standards Board (FASB) has issued an exposure draft (ED)of a proposed Statement of Financial Accounting Standards on employers' accounting for postretirement benefits other than pensions (postretirement benefits). If adopted, the proposed standard will significantly change the method by which most companies account for health care costs, life insurance and of her benefits provided to t heir retirees. Most companies currently account for these benefits either on a cash basis (pay-as-you-go) or on a terminal accrual basis (accrue at retirement). The proposed rules would require most companies to adopt accrual accounting starting in 1992. FASB also proposes, starting in 1997, that a company's balance sheet reflect a liability at least equal to the unfunded obligation to retirees and active employees fully eligible to receive benefits. Additionally, the ED would require disclosures similar to those for pensions. This article discusses the proposed accounting requirements under the ED and examines certain related issues. An appendix comparing the ED to Statements No. 87 and 88 is also attached.
- Subjects
ACCOUNTING standards; ACCOUNTING changes; ACCOUNTING methods; RETIREMENT benefits; EMPLOYEE benefits; COMPENSATION management
- Publication
Benefits Quarterly, 1989, Vol 5, Issue 3, p1
- ISSN
8756-1263
- Publication type
Article