Peeling away financial reporting issues one layer at a time

Category for Pensions and OPEBs

On Golden’s Con, Part III: Fixing the Disclosure Mess

…Eye of newt, and toe of frog, Wool of bat, and tongue of dog, Adder’s fork, and blind-worm’s sting, Lizard’s leg, and owlet’s wing …

If you have read my blog every now and then, it [Read More...]

An Accounting Parable for Our Time

As told to me by a faculty member at Ohio State, who heard it in a presentation by Eugene Flegm, former general auditor for General Motors:

Some years after the end of World [Read More...]

The IASB’s Revisions to Pension Accounting Rules are Based on a Preposterous Premise

Last June, the IASB issued revisions to IAS 19, Employee Benefits. The accompanying press release would have us believe that the five-year project resulting in incremental changes to the accounting for pension costs [Read More...]

FAS 106: Will the SEC Allow GM to Have the Largest Earnings Cookie Jar in History?

Note: This post was published about 12 hours prior to publication of Justin Hyde’s article on the same topic in the Detroit Free Press.  Justin was the one who brought the topic to [Read More...]

Pension Accounting Reform Ducks for Cover Just When Investors Need It

The backdrop for today’s post is the present dive in stock prices at the same time the Federal Reserve is trying to stimulate the economy by decreasing interest rates.  What I’m fixin’ to describe [Read More...]

FAS 158: Funded Status is Padded with Company Shares

FAS 158 makes it look like the 'funded status' of defined benefit  post-employment benefit plans are now transparent.  Actually, they are not.  To see why, consider the following three transactions:

Company A purchased 500 shares [Read More...]

FAS 158: Pension Accounting Crawls its Way Towards Reality

The FASB has belatedly, and only half-way closed the proverbial barn door on misleading pension accounting in FAS 158. In re-measuring pension assets and liabilities on the balance sheet, [Read More...]