Open AccessOpinions Of Financial Analysts On Accounting For defined Benefit Pension Plans
Author(s) -
Kenneth E. Stone,
David W. Joy,
cynthia J. Thomas
Publication year - 2011
Publication title -
journal of applied business research
Language(s) - English
Resource type - Journals
eISSN - 2157-8834
pISSN - 0892-7626
DOI - 10.19030/jabr.v11i3.5861
Subject(s) - pension , pension plan , netting , business , balance sheet , plan (archaeology) , accounting , finance , fair value , actuarial science , service (business) , balance (ability) , marketing , medicine , archaeology , physical medicine and rehabilitation , history
Responding financial analysts preferred pension plan accounting which contrasts with requirements of SFAS No. 87. The preferred model included: (1) Plan assets and accumulated benefit obligations are on the balance sheet. (2) Prior service cost is recognized in the year of plan adoption or amendment. (3) Gains and losses are recognized when they occur. (4) Annual pension expense is computer by netting the change in fair value of plan assets, deposits to the pension plan, and the change in accumulated benefit obligations.