Open AccessAccounting For OPEBs: Does Better Accounting Serve The Public Interest?
Author(s) -
Timothy Pearson,
Scott I. Jerris,
Richard C. Brooks
Publication year - 2011
Publication title -
journal of applied business research
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.149
H-Index - 22
eISSN - 2157-8834
pISSN - 0892-7626
DOI - 10.19030/jabr.v11i3.5854
Subject(s) - accounting , accrual , governmental accounting , excuse , business , accounting standard , financial accounting , fund accounting , public interest , mark to market accounting , accounting information system , political science , law , earnings
In 1992, the Financial Accounting Standards Board (FASB) issues Employers Accounting for Postretirement Benefits Other Than Pensions (SFAS 106). SFAS 106 requires public companies to account for postretirement benefits other than pensions (e.g., health care) on an accrual basis. While SFAS 106 is good accounting, it provides corporations with an excellent excuse to amend or terminate health care coverage for retirees. This paper discusses the economic and social consequences of SFAS 106 as well as the politics of the accounting standard setting process.