Controversy Livens FASB Hearings on Pension Accounting
Article Abstract:
Accounting for pension funds is a controversial issue. Hearings were held by the Financial Accounting Standards Board (FASB) last January 11-13 and 18-19, 1984 in New York City, New York. Controversy centers around three basic issues. The first involves the period over which the cost of pensions should be recognized. The second issue concerns how pension cost is allocated to individual periods. The third considers the status of pensions on financial statements. Now, they are not included, though some pensions are clearly under or over funded. The third issue is the most controversial. Most claim that the figure of liability for pensions is subjective, too soft of a figure. Not all opinions were negative. Changes for several companies would be huge. Therefore, many suggested a long transition period. Most at the hearing agreed that changes were necessary in pension fund accounting, but felt that they should not result in major changes in the basic recognition principles at use at present.
Publication Name: Journal of Accountancy
Subject: Law
ISSN: 0021-8448
Year: 1984
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Changing the U.S. Budget System
Article Abstract:
United States government decision makers are making decisions based on incomplete financial analysis and under a faulty budget system. No distinctions are made between capital and operating expenses. It misleads by not recognizing capital assets and providing for future expenses. Many are arguing for a capital budget. A new budget will not solve the deficit problem, but it will provide a much needed sense of perspective.
Publication Name: Journal of Accountancy
Subject: Law
ISSN: 0021-8448
Year: 1984
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