Yesterday, I noted a Wall Street Journal article discussing FASB’s decision to review the rules on how companies measure benefit obligations under cash balance pension plans. More articles on the subject today:
- Wall Street Journal: “Cash-Balance-Plan Accounting Could Be Overhauled by FASB”
- Reuters.com: “FASB to address controversial pension plan”
- New York Times: “Changes Discussed in Accounting for Pension Fund Obligations”
Quote of note from the New York Times article: “The board’s work is at a preliminary stage, but actuaries said it seemed to be heading toward a new accounting method that would require most companies with cash-balance plans to increase their pension obligations. Mr. Lofgren, of Watson Wyatt, said some companies’ pension obligations stood to increase about 20 percent if the changes were adopted. An increase in pension obligations can indirectly reduce profit.”