Finance | FSA | Changes to Accounting for Defined Benefit PostRetirement Plans

Journal of Applied Business Research – Second Quarter 2007 Volume 23, Number 2 47 Changes To Accounting For Defined Benefit Postretirement Plans: Discussion And Illustration Norman H. Godwin, Auburn University Arlette C. Wilson, Auburn University... More

Journal of Applied Business Research – Second Quarter 2007 Volume 23, Number 2 47 Changes To Accounting For Defined Benefit Postretirement Plans: Discussion And Illustration Norman H. Godwin, Auburn University Arlette C. Wilson, Auburn University INTRODUCTION equests that the Financial Accounting Standards Board (FASB) address issues related to employers’ accounting for defined benefit postretirement plans have increased in recent years. Those requests have been made by users of financial statements and others, including the Securities and Exchange Commission (SEC) staff and representatives of the Pension Benefit Guaranty Corporation. Constituents are interested in improved transparency and understandability. Agreeing that the accounting for defined benefit postretirement plans should be reconsidered, the FASB added the project to its agenda in November 2005. The first phase of the project is complete and addresses the reporting of a plan’s funded status. U Less