The Federal Accounting Standards Board has published a long-awaited proposal for updating the rules employers must follow when accounting for retirement plans.
The draft, which would amend FASB Statements Numbers 87, 88 106 and 132R, would require an employer to include plan shortfalls or surpluses in the statements of financial position at the front of financial reports.
Today, employers can publish that information in the notes to their financial reports.
Putting the information up front will help readers understand the reporting companies' finances better, and implementing the proposed rules should be inexpensive, because companies already have to disclose most of the information in their notes, according to FASB, Norwalk, Conn.
A copy of the FASB pension reporting draft is on the Web at Document Link
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