Covers accounting for pensions and other postretirement benefits

FASB project to overhaul pension accounting 

• Two-stage overhaul of rules for pension plans
• First phase is focused on balance sheet presentation

• Disclosures would be moved out of footnotes and
  into the balance sheet
• Would require an employer to report the economic funded or unfunded status of its defined benefit postretirement plans
• Companies would still have the flexibility to smooth volatility of their pension holdings
• FASB issues Exposure Draft for first phase
  ◊ Press release 3.31.06
• First phase may be completed in 2006 and
  effective for 2007

• Second phase would involve a complete review of FASB 87 and FASB 106

• Will address valuation and measurement issues
• To be co-ordinated with IASB
• Expected to take at least three years

• Project was proposed by FASB in November 2005

• Press release 11.10.05
• FASB Board handout

FASB Staff Positions

• FSP 106-2  2004

• Medicare Prescription Drug, Improvement and Modernization Act of 2003

• FSP 106-1  2004

• Medicare Prescription Drug, Improvement and Modernization Act of 2003

Re: FASB 87 and 106 discount rates 3.31.01

Re: Foreign private issuers 5.01.01

SEC's Current accounting issues 2005

• Topic II.H 

• H.1     Selection of discount rates
• H.2     Disclosure

AICPA article on cash balance conversions 2000

AICPA article on cash balance conversions 2000

AICPA note on FASB 135 1998

AICPA summary of FASB 132 1998

Frisch's Restaurants 2006

• Software program flaw
• Form 8-K 1.19.06
• Form 10-K/A 2.24.06

Accounting Issues