If you are a registered user please log in to see more postings.
 

The AAO Weblog covers accounting issues and current events as they relate the practice of investment analysis. All posts prior to September, 2007 are in the public domain, but after September 4, only subscribers to The Analyst's Accounting Observer will see all posts going forward. Only selected, occasional posts will be released to the public domain from September 4 forward.

Subscriptions to full posts available for $500 annually.
Pension/OPEB Roundtable, June 27
Location: BlogsAAO Weblog (Public)    
Posted by: Jack Ciesielski 6/28/2006 6:37 AM
As I mentioned yesterday, I headed up to Norwalk to participate in FASB's discussion roundtable on its proposal for the first phase of overhauling the accounting for pensions and OPEB plans. What did I hear?

I was struck by a couple of things. First of all, it seemed virtually unanimous among the participants I observed (I attended only the afternoon session) that the FASB was on the right track in splitting the overall project into two phases: the fast-track Phase One which pulls netted information in the footnotes into clearer view on the balance sheet, and the long-track Phase Two, which will be a review of many knotty measurement and disclosure issues. The Phase One issue has no measurement issues in it; it's essentially a drag 'n drop exercise. (Drag the numbers out of the footnotes, and drop 'em in the balance sheet.)

Once everyone agreed on the two-phase approach, the roundtable members then spent about a third of the allotted time discussing Phase Two measurement issues and trying to keep Phase One from showing the projected benefit obligation as the measure of the firm's obligation for pensions. A two-track project is fine with everyone, it seemed - as long as it doesn't say much to users of financial statements.

* * * * * * * * * *


It was the last roundtable as a FASB member for Katherine Schipper, who returns to Duke University next month. Though she'll no longer be at the FASB, she'll still be "Katherine the Great." Duke wins, FASB loses.
Permalink |  Trackback