Retiree benefit accounting rule to affect profits.

National Underwriter Property & Casualty-Risk & Benefits Management, October, 1990 by Crosson, Cynthia

Retiree Benefit Accounting Rule To Affect Profits After more than a year of wrangling, the Financial Accounting Standards Board has approved a draft ruling that promises to hit employers squarely in their financial statements by requiring them to account for retiree health benefits, life insurance and other non-pension benefits on an accrual rather than a pay-as-you-go basis.

There will be a formal vote on the final standard by the end of the year, said FASB project officer Diana Scott. The new rule would require companies in 1993 to start deducting from their earnings reports a portion of the benefits they have promised to future retirees. Companies can at that time recognize their full liability immediately, or phase it in on a delayed basis over the...

Read the rest of this article with a Free Trial at HighBeam Research.

Premium Content Partnership | HighBeam Research provides an in-depth online archive library of reference works.