FAS assumptions of large organizations

Article Abstract:

Executives are constantly challenged to maximize organizational performance and keep company stock value rising. Employee benefits programs can exert a significant impact on business enterprises' financial results because of the selection of discount rate assumptions for pensions and other post-retirement benefits under financial accounting standards 87 and 106. A survey on Fortune 100 company assumption selections can be used by financial executives to evaluate the consistency and reasonability of these assumptions for their organizations.

Employee Benefits & Services, Retirement Benefits, Prices and rates, Human resource management, Pension funds, Employee benefits, Discount rates

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Recent developments in benefits accounting

Article Abstract:

The Financial Accounting Standards Board (FASB) implemented Statement 112, Employers' Accounting for Postemployment Benefits, which contains rules that go beyond Statement 106, the Employers' Accounting for Postretirement Benefits Other Than Pensions. Statement 112 requires each postemployment benefit to be accrued either over the employee's working career or as an expense at the date of the event that gives rise to the benefit. Implications for stock options and employee stock ownership plans are discussed.

Stock options, Deferred compensation, Employee stock ownership plans

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Postretirement benefit accounting: survey results and implications

Article Abstract:

Most companies have been seeking ways to lessen their costs and liabilities in relation to postretirement nonpension benefits required by Financial Accounting Statement (FAS) No. 106. A study reveals that 51% of respondent firms indicated in their annual reports that changes to postretirement nonpension benefit plans were made or were considered in 1993 and 1994. The most common amendments cover cost-sharing provisions, caps on company contributions and annual adjustments to retiree contributions.

Finance, Business enterprises

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