Post Retirement Case Study
Juanita Ossa
Dr. Smith
Intermediate 3
Accounting for Pension Expense and Postretirement Plans
I was Searching for the accounting practices and regulation about pensions and post retirement and I began with revising the SFAS 87, Employers’ Accounting for Pensions, and the SFAS 106, Employers’ Accounting for Postretirement Benefits Other Than Pensions. I also came across of couple of amendments of SFASs 87, SFASs 88, SFASs106, SFASs132(R). This last statement requires employers to recognize the overfunded or underfunded positions of defined benefit postretirement plans, including pension plans, in their balance sheets. In applying accrual accounting to pensions, the general idea involves 3 aspects of past pension accounting: delaying recognition of certain events, reporting net cost, and offsetting liabilities and assets. SFAS 87 mentioned the revolutionary change that ERISA brought to the accounting world as the authors mentioned in the chapter.
Dr. Smith
Intermediate 3
Accounting for Pension Expense and Postretirement Plans
I was Searching for the accounting practices and regulation about pensions and post retirement and I began with revising the SFAS 87, Employers’ Accounting for Pensions, and the SFAS 106, Employers’ Accounting for Postretirement Benefits Other Than Pensions. I also came across of couple of amendments of SFASs 87, SFASs 88, SFASs106, SFASs132(R). This last statement requires employers to recognize the overfunded or underfunded positions of defined benefit postretirement plans, including pension plans, in their balance sheets. In applying accrual accounting to pensions, the general idea involves 3 aspects of past pension accounting: delaying recognition of certain events, reporting net cost, and offsetting liabilities and assets. SFAS 87 mentioned the revolutionary change that ERISA brought to the accounting world as the authors mentioned in the chapter.