Phase II: Postretirement Benefit Obligations, Including Pensions

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Issue:

Miscellaneous

 

Written by:

Sonia G

 

Date added:

August 19, 2014

 

Level:

University

 

Grade:

A

 

No of pages / words:

10 / 2690

 

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534 times

 

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The second phase of FASB’s project, encompassing a comprehensive review of all accounting rules applicable to pensions, is expected to take two to three years beyond the completion of the first project phase. History In 2003, the FASB issued Statement 132(R), which addressed concerns about the need for enhanced disclosures for plan assets, cash flows for benefit payments and contributions, and components of net benefit cost reported in interim periods...
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Statement 132(R) did not, however, address other related concerns, including the following: • Delayed recognition • Combining of service cost, asset returns, and financing costs • Insufficient information about cash flows • Measurement of the liability • Assumptions Requirements • Contributions-based accounting for an employer’s participation in a multi-employer plan • Insufficient and overly complex disclosures In 2005, the SEC staff issued its Report and Recommendations Pursuant to Section 401(c) of the Sarbanes-Oxley Act of 2002 on Arrangements with Off-Balance Sheet Implications, Special Purpose Entities, and Transparency of Filings by Issuers...
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