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Assessing the FASB's responsiveness to comment letters on other postretirement benefits
Author(s) -
Bline Dennis M.,
Skekel Ted D.
Publication year - 1991
Publication title -
journal of corporate accounting and finance
Language(s) - English
Resource type - Journals
eISSN - 1097-0053
pISSN - 1044-8136
DOI - 10.1002/jcaf.3970020303
Subject(s) - compromise , obligation , liability , position (finance) , accounting , law and economics , law , business , actuarial science , political science , economics , finance
The FASB has issued FAS No. 106 entitled “Employers' Accounting for Postretirement Benefits Other Than Pensions,” after much debate and some compromise. This article examines the FASB's responsiveness to criticisms expressed in many of the respondents' comment letters regarding certain proposals included in the exposure draft that served as the basis for FAS No. 106. Nine controversial issues are analyzed. While the FASB modified or reversed its position on five of the nine issues, no clear pattern of responsiveness was discernable. Furthermore, only two of the five changed positions can be considered major: dropping the minimum liability recognition requirement and allowing immediate recognition of the transition obligation.