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FASB's quick fix for pension accounting is only first step
Hidden liabilities, understated expenses, and discretionary management assumptions make pension accounting controversial. Previous accounting standards allowed companies with underfunded pension plans to accumulate pension liabilities off the balance sheet while frequently reporting a net pension asset on the balance sheet. A new standard improves transparency by requiring that the pension's funded status be reported on the balance sheet. In assessing the impact of the new standard, this study finds that it creates profound reductions in owners' equity for many U.S.-listed companies. Pension cost smoothing and three primary pension assumptions--the expected rate of return on plan assets, discount rate, and expected rate of increase in employee compensation--continue to be controversial.
Ketersediaan
| Call Number | Location | Available |
|---|---|---|
| FAJ6302 | PSB lt.dasar - Pascasarjana | 2 |
| Penerbit | Virginia: CFA Institute 2007 |
|---|---|
| Edisi | Vol. 63, No. 2, Mar. - Apr., 2007 |
| Subjek | Discount rate Defined-Benefit (DB) Plans pension accounting FAS 158 funded status expected return on plan assets owners’ equity impact |
| ISBN/ISSN | 0015198X |
| Klasifikasi | NONE |
| Deskripsi Fisik | 15 p. |
| Info Detail Spesifik | Financial Analysts Journal |
| Other Version/Related | Tidak tersedia versi lain |
| Lampiran Berkas |