FASB 132: what companies must disclose.

New pension and postretirement disclosures will bring uniformity to the requirements employers must meet.

Employers have a new standard to follow in disclosing pension and other postretirement benefits in their financial statements. In February 1998, the FASB issued Statement no. 132, Employers' Disclosures about Pensions and Other Postretirement Benefits. CPAs should understand its requirements and how they have changed from past standards. The two disclosure illustrations provided here to supplement those in the statement itself will help CPAs as they coordinate the implementation of Statement no. 132 between the employer, its actuaries and external auditors.

A BIT OF BACKGROUND

FASB Statement no. 87, Employers' Accounting for Pensions, and Statement no. 106, Employers' Accounting for Postretirement Benefits Other Than Pensions dramatically altered the financial statements of public and nonpublic companies--Statement no. 87 by requiring them to recognize and disclose more data about pension benefit obligations and Statement no. 106 by mandating recognition and disclosure of retiree health care benefit obligations, among other things.

Statement no. 132 is intended to enhance the effectiveness of those disclosures (as well as fine-tune those of FASB Statement no. 88, Employers' Accounting for Settlements and Curtailments of Defined Benefit Pension Plans and for Termination Benefits). Companies must also now disclose some information not required in the past, and some disclosure requirements that are no longer considered useful have beets eliminated.

Essentially, Statement no. 132

* Adds disclosure of the components of changes in the benefit obligation and asset value.

* Allows aggregation of an entity's disclosures of underfunded and overfunded plans.

* Eliminates disclosure of the components of benefit obligations and of alternative obligation measures.

* Eliminates disclosure of plan provisions.

* Adds disclosure of comprehensive income.

* Modifies disclosure of sensitivity to changes in health care trend rates.

* Standardizes disclosures of pension and other postretirement benefits.

* Permits nonpublic entities to reduce disclosures.

As part of the FASB's ongoing program to improve financial reporting effectiveness, Statement no. 132 responds to financial statement users' need for information that will help them

* Evaluate an employer's retirement benefit obligation and its effect on prospects for future cash flows.

* Analyze the quality of currently reported net income.

* Estimate future reported net income.

By standardizing disclosure requirements, the FASB hopes to improve the framework users employ to make judgments about an entity's relative financial viability.

Statement no. 132--which supersedes the disclosure requirements in Statement nos. 87, 88 and 106 (see exhibit 1)--addresses only disclosure requirements of pensions and other postretirement benefits, not measurement or recognition issues.

Exhibit 1: Sample Disclosures Under FASB 132

                                          Superseded by FASB 132
Existing Pronouncement                    Paragraph Number(s)

Statement no. 87, paragraph 54            Paragraphs 5 and 8
Statement no. 87, paragraphs 55 and 56    Paragraphs 6 and 7
Statement no. 87, paragraph 65            Paragraph 9
Statement no. 87, paragraph 66            Paragraphs 5 and 8
Statement no. 87, paragraph 69            Paragraph 10
Statement no. 88, paragraph 17            Paragraphs 5(a),
                                          5(b),5(d), 5(I) and 8(h)
Statement no. 106, paragraph 74           Paragraphs 5 and 8
Statement no. 106, paragraphs 77 and 78   Paragraphs 6 and 7
Statement no. 106, paragraph 82           Paragraph 10
Statement no. 106, paragraph 106          Paragraph 9
Statement no. 106, paragraph 107          Paragraphs 5 and 8

REQUIRED DISCLOSURES

Statement no. 132 requires employers that sponsor one or more defined benefit pension or other postretirement benefit plans to disclose the following in their financial statements:

* A reconciliation of beginning and ending balances of the benefit obligation, which refers to the entity's projected benefit obligation (PBO) under Statement no. 87 or its accumulated postretirement benefit obligation (APBO) under Statement no. 106. Employers no longer have to disclose the separate components (for fully eligible active employees, other active employees and retirees) of the APBO. For pension plans, employers no longer must disclose the vested benefit obligation and the accumulated benefit obligation. (For an exception for employers with more than one plan, see the following section.)

* A reconciliation of beginning and ending balances of the fair value of plan assets. Nonqualified pension and other postretirement benefits plans frequently do not have separate plan assets. Instead, payments are made from the plan sponsor's general assets. Statement no. 132 does not give special disclosure requirements for these cases. Employers should still show a reconciliation, even though there would be no return on assets and the beginning and ending values would be zero.

* The plans' funded status, including the amounts recognized and not recognized, in the statement of financial position.

* The amount of net periodic benefit cost recognized. Although the actual return on assets (ROA) and the net amortization and deferral no longer are presented as components of net periodic pension cost, employers must show the expected ROA as well as the amortization components for the unrecognized transition obligation or asset, the prior-service cost and the gain or loss individually.

* The amount included within other comprehensive income for the period, which refers to the change in the additional minimum pension liability recognized under paragraph 37 of Statement no. 87.

* On a weighted-average basis, the assumptions used in accounting for the plans, including the discount rate, salary scale and expected long-term rate of return.

* The assumed health care cost trend rates, which include the rate for the next year; a general description of the direction and pattern of change in the assumed trend rates in subsequent years; the ultimate trend rates and when those rates are expected to be achieved.

* The effect of a 1% change (both increase and decrease) in the assumed health care cost trend rates.

* The amounts and types of securities of the employer and related parties included in plan assets, if any.

* Any alternative method used to amortize prior-service amounts or unrecognized net gains and losses.

* Any substantive commitment used as the basis for accounting for the benefit obligation, such as a history of regular benefit increases that are not specified in a written document but that are expected to continue.

* The cost of providing any special or contractual termination benefits, including a description of the nature of the event.

* An explanation of any significant change in the benefit obligation or plan assets not otherwise apparent in other disclosures.

EMPLOYERS WITH TWO OR MORE PLANS

Employers with two or more pension or other postretirement benefit plans have considerable flexibility under Statement no. 132. Generally, pension plan disclosures cannot be aggregated with those for other postretirement benefit plans. However, an employer may aggregate the required disclosures for all of its plans of the same type or the plans maybe disaggregated in groups. In so doing, disclosures of overfunded plans (plans with fair value of assets in excess of the accumulated benefit obligation) may be aggregated, or disaggregated, with disclosures for underfunded plans. However, if the employer aggregates the disclosures, it must separately disclose the aggregate benefit obligation and aggregate fair value of plan assets for the underfunded plans. In any event, it must disclose the prepaid asset separately from the accrued liability for the statement of financial position.

In addition, an employer with pension and postretirement benefit plans both in the United States and abroad may combine disclosures for plans of the same type. Separate disclosures are required if the benefit obligations of the plans outside the United States (1) are significant relative to the total benefit obligation and (2) use significantly different assumptions.

REDUCED DISCLOSURES FOR NONPUBLIC ENTITLES

In assessing the usefulness of financial reporting for nonpublic entities, the FASB concluded that a reduced, alternative set of disclosures would be appropriate since users do not require the same "level of precision" in assessing their benefit costs and net income. Although nonpublic entities are encouraged to make the full disclosures listed above, they may instead elect to use reduced disclosure. A nonpublic entity is defined as any entity other than one

* Whose debt or equity securities trade in a public market either on a stock exchange (domestic or foreign) or in the over-the-counter market, including securities quoted only locally or regionally.

* That makes a filing with a regulatory agency in preparation for the sale of any class of debt or equity securities in a public market.

* An entity that is controlled by such an entity.

The reduced set of alternative disclosures includes

* The benefit obligation, fair value of plan assets and funded status of the plan. Significant items affecting the obligations or the assets may need to be disclosed, as indicated in the final bullet below.

* Employer contributions, participant contributions and benefit payments.

* The amounts recognized in the statement of financial position, including the prepaid asset, the accrued liability, any intangible asset and the amount of accumulated other comprehensive income recognized.

* The amount of net periodic benefit cost and the amount of other comprehensive income due to a change in the minimum pension liability. The separate components of net periodic benefit cost are not disclosed.

* On a weighted-average basis, the assumptions used in accounting for the plans.

* The assumed health care cost trend rates, which should include the rate for the next year, a general description of the direction and pattern of change in the assumed trend rates in subsequent years, the ultimate trend rates and when those rates are expected to be achieved.

* The amounts and types of securities of the employer and related parties, if any, included in plan assets.

* The nature and effect of significant nonroutine events, such as plan amendments, business combinations, divestitures, curtailments and settlements.

DEFINED CONTRIBUTION AND MULTIEMPLOYER PLANS

An employer must disclose the amount of cost recognized for defined contribution pension or other postretirement benefit plans separately from the amount of cost recognized for defined benefit plans. The disclosures must include a description of the nature and effect of any changes that have an impact on comparability (for example, a business combination, a divestiture or a change in the rate of employer contributions). While employers no longer are required to disclose the plan description, the employee groups covered or the basis for determining contributions, they are encouraged to do so if the information is meaningful.

Statement no. 132 calls for an employer to disclose the amount of contributions to multiemployer plans during the period. For disclosure purposes, an employer may aggregate contributions for pensions and other postretirement benefits. The disclosures should include a description of the nature and effect of any changes affecting comparability. Employers no longer are required to disclose plan descriptions, the employee groups covered or the types of benefits provided. The provisions of Statement nos. 87 and 106 regarding withdrawal liability continue to apply.

OTHER MATTERS

Employers are permitted to disclose additional information if they believe it is useful, such as a description of the plan's major provisions. Nonqualified plans may be combined with qualified plans for disclosure purposes. However, since nonqualified plans generally do not have plan assets, the accumulated benefit obligation and fair value of assets may need to be shown separately (see "Employers With Two or More Plans").

SAMPLE ILLUSTRATIONS

Exhibit 2, illustrates the financial statement disclosure of an employer with multiple defined benefit pension and other postretirement benefit plans. During the two-year period, the employer had an acquisition affecting its pension plans, made amendments to the plans, settled a portion of the pension obligation and curtailed other postretirement benefit plans. In addition, the accumulated benefit obligation exceeded the accrued pension liability in the second year shown for the employer's nonqualified pension plan.

Exhibit 2: Sample Disclosure Under FASB 132

ABC COMPANY DISCLOSURE OF PENSION AND OTHER POSTRETIREMENT BENEFITS

ABC Company sponsors several qualified and nonqualified pension plans and other postretirement benefit plans for its employees. The following tables provide a reconciliation of the changes in the plans' benefit obligations and fair value of assets over the two-year period ending December 31, 1999, and a statement of the funded status as of December 31 of both years:

                                       Pension Benefits
Amount in ($000)                       1999        1998

Reconciliation of benefit
obligation

Obligation at January 1              34,969      32,221
Service cost                          1,160       1,084
Interest cost                         2,729       2,514
Participant contributions                 0           0
Plan amendments                           0       1,323
Actuarial (gain) loss                 1,734      (1,000)
Acquisitions (divestitures)               0         402
Benefit payments                     (1,713)     (1,575)
Curtailments                              0           0
Settlements                          (1,645)          0
Obligation at December 31            37,234      34,969

Reconciliation of fair value
of plan assets

Fair value of plan assets
at January 1                         33,031      30,576
Actual return on plan assets          2,943       3,523
Acquisitions (divestitures)               0         387
Employer contributions                  152         120
Participant contributions                 0           0
Benefit payments                     (1,713)     (1,575)
Settlements                          (1,645)          0
Fair value of plan assets at
December 31                          32,768      33,031

Funded status

Funded status at December 31         (4,466)     (1,938)
Unrecognized transition
(asset) obligation                      396         598
Unrecognized prior-service cost       1,780       1,917
Unrecognized (gain) loss               (235)     (1,932)
Net amount recognized               $(2,525)    $(1,355)

                                         Other Benefits
Amount in ($000)                       1999         1998

Reconciliation of benefit
obligation

Obligation at January 1              22,240       21,785
Service cost                            224          194
Interest cost                         1,721        1,691
Participant contributions               322          294
Plan amendments                           0            0
Actuarial (gain) loss                 1,954         (440)
Acquisitions (divestitures)               0            0
Benefit payments                     (1,452)      (1,284)
Curtailments                         (5,674)           0
Settlements                               0            0
Obligation at December 31            19,335       22,240

Reconciliation of fair value
of plan assets

Fair value of plan assets
at January 1                              0            0
Actual return on plan assets              0            0
Acquisitions (divestitures)               0            0
Employer contributions                1,130          990
Participant contributions               322          294
Benefit payments                     (1,452)      (1,284)
Settlements                               0            0
Fair value of plan assets at
December 31                               0            0

Funded status

Funded status at December 31        (19,335)     (22,240)
Unrecognized transition
(asset) obligation                        0            0
Unrecognized prior-service cost           0            0
Unrecognized (gain) loss                  0        3,015
Net amount recognized              $(19,335)    $(19,225)

The following table provides the amounts recognized in the statement of financial position as of December 31 of both years:

                                Pension Benefits
Amount in ($000)                1999        1998

Prepaid benefit cost               0           0
Accrued benefit liability     (2,637)     (1,355)
Intangible asset                  59           0
Accumulated other
comprehensive income              53           0
Net amount recognized        $(2,525)    $(1,355)

                                   Other Benefits
Amount in ($000)                 1999         1998

Prepaid benefit cost                0            0
Accrued benefit liability     (19,335)     (19,225)
Intangible asset                    0            0
Accumulated other
comprehensive income                0            0
Net amount recognized        $(19,335)    $(19,225)

The company's nonqualified pension plan was the only pension plan with an accumulated benefit obligation in excess of plan assets. The plan's accumulated benefit obligation was $1,506,000 at December 31, 1999, and $1,245,000 at December 31, 1998. There are no plan assets in the nonqualified plan due to the nature of the plan. All of the company's plans for postretirement benefits other than pensions also have no plan assets. The aggregate benefit obligation for those plans is $19,335,000 as of December 31, 1999, and $22,240,000 as of December 31, 1998.

The following table provides the components of net periodic benefit cost for the plans for fiscal years 1999 and 1998:

                                   Pension Benefits
Amounts in ($000)                   1999       1998

Service cost                       1,160      1,084
Interest cost                      2,729      2,514
Expected return on plan assets    (2,888)    (2,736)
Amortization of transition
(asset) obligation                   202        202
Amortization of prior-service
 cost                                137         68
Amortization of net (gain) loss        5          2
Net periodic benefit cost          1,345      1,134
Curtailment (gain) loss                0          0
Settlement (gain) loss               (23)         0
Net periodic benefit cost after
curtailments and settlements       1,322      1,134

                                   Other Benefits
Amounts in ($000)                   1999      1998

Service cost                         224       194
Interest cost                      1,721     1,691
Expected return on plan assets         0         0
Amortization of transition
(asset) obligation                     0         0
Amortization of prior-service
 cost                                  0         0
Amortization of net (gain) loss       72       135
Net periodic benefit cost          2,017     2,020
Curtailment (gain) loss             (777)        0
Settlement (gain) loss                 0         0
Net periodic benefit cost after
curtailments and settlements       1,240     2,020

The amount included within other comprehensive income arising from a change in the additional minimum pension liability was $53,000 at December 31, 1999, and $0 at December 31, 1998.

The prior-service costs are amortized on a straight-line basis over the average remaining service period of active participants. Gains and losses in excess of 10% of the greater of the benefit obligation and the market-related value of assets are amortized over the average remaining service period of active participants.

The company acquired XYZ Enterprises on December 31, 1998, including its pension benefit plans. The company's pension plans were amended as of December 31, 1998, to reflect changes required by the new collective bargaining agreement. On December 31, 1999, the company settled its pension obligation in the plan for previously closed plant A by purchasing annuities from an insurance company.

The company has multiple nonpension postretirement benefit plans. The health care plans are contributory, with participants' contributions adjusted annually; the life insurance plans are noncontributory. The accounting for the health care plans anticipates future cost-sharing changes to the written plan that are consistent with the company's expressed intent that retirees share a fixed percentage of the overall cost of benefits each year. The company recognized a curtailment as of December 31, 1999, due to the closing of plant B. The former employees of plant B who were not eligible for retirement or within five years of retirement at the time of the closing will not be eligible for postretirement benefits other than pensions from the company.

The assumptions used in the measurement of the company's benefit obligation are shown in the following table:

                                 Pension Benefits
                                  1999     1998

Weighted-average assumptions
as of December 31

Discount rate                     7.50%    8.00%
Expected return on plan assets    9.00     9.00
Rate of compensation increase     5.00     5.00

                                 Other Benefits
                                  1999     1998

Weighted-average assumptions
as of December 31

Discount rate                     7.50%    8.00%
Expected return on plan assets    N/A      N/A
Rate of compensation increase     N/A      N/A

For measurement purposes, a 10% annual rate of increase in the per capita cost of covered health care benefits was assumed for 1998. The rate was assumed to decrease gradually each year to a rate of 5% for 2005 and remain at that level thereafter.

Assumed health care cost trend rates have a significant effect on the amounts reported for the health care plans. A 1% change in assumed health care cost trend rates would have the following effects:

                                1% Increase   1% Decrease

Effect on total of service
and interest cost components
of net periodic
postretirement health
care benefit cost                    142        $ (161)

Effect on the health care
component of the accumulated
postretirement benefit
obligation                         1,209        (1,568)

In exhibit 2, the disclosure illustration for pensions and other benefits is displayed in the parallel format shown in Statement no. 132, a format that makes it easier for users to understand and compare different types of benefits.

Exhibit 3, below, illustrates the financial statement disclosures for that same employer as if it were a nonpublic entity that chose to reduce the amount of disclosures to the extent permitted.

Exhibit 3: Sample Disclosures for a Nonpublic Entity

ABC COMPANY DISCLOSURE OF PENSION AND OTHER POSTRETIREMENT BENEFITS

The ABC Company sponsors several qualified and nonqualified pension plans and other postretirement benefit plans for its employees. The following table summarizes the benefit obligations, the fair value of assets and the funded status over the two-year period ending December 31, 1999:

                                   Pension Benefits
Amount in ($000)                   1999         1998

Benefit obligation at
December 31                      34,969       19,335
Fair value of plan assets at
December 31                      33,031            0
Funded status at December 31    $(1,938)    $(19,335)

                                     Other Benefits
Amount in ($000)                    1998        1999

Benefit obligation at
December 31                       22,240      37,234
Fair value of plan assets at
December 31                            0      32,768
Funded status at December 31    $(22,240)    $(4,466)

The amounts of contributions and benefits payable from the plan are as follows:

                              Pension Benefits
Amounts in ($000)              1999       1998

Employer contributions          152        120
Participant contributions         0          0
Benefit payments             (1,713)    (1,575)

                               Other Benefits
Amounts in ($000)              1999       1998

Employer contributions        1,130        990
Participant contributions       322        294
Benefit payments             (1,452)    (1,284)

The following table provides the amounts recognized in the statement of financial position as of December 31 of both years:

                                Pension Benefits
Amounts in ($000)               1999        1998

Prepaid benefit cost               0           0
Accrued benefit liability     (2,637)     (1,355)
Intangible asset                  59           0
Accumulated other
comprehensive income              53           0
Net amount recognized        $(2,525)    $(1,355)

                                  Other Benefits
Amounts in ($000)                1999         1998

Prepaid benefit cost                0            0
Accrued benefit liability     (19,335)     (19,225)
Intangible asset                    0            0
Accumulated other
comprehensive income                0            0
Net amount recognized        $(19,335)    $(19,225)

The company's nonqualified pension plan was the only pension plan with an accumulated benefit obligation in excess of plan assets. The plan's accumulated benefit obligation was $1,506,000 at December 31, 1999, and $1,245,000 at December 31, 1998. There are no plan assets in the nonqualified plan due to the nature of the plan. All of the company's plans for postretirement benefits other than pensions also have no plan assets. The aggregate benefit obligation for those plans is $19,335,000 as of December 31, 1999, and $22,240,000 as of December 31, 1998.

The following table provides the net periodic benefit cost for fiscal years 1999 and 1998:

                                             Pension Benefits
Amounts in ($000)                        1999               1998

Net periodic benefit cost                $1,345           $1,134
Curtailment (gain) loss                       0                0
Settlement (gain) loss                      (23)               0
Net periodic benefit cost after
curtailments and settlements             $1,322           $1,134

                                          Other Benefits
Amounts in ($000)                        1999               1998

Net periodic benefit cost                $2,017           $2,020
Curtailment (gain) loss                    (777)               0
Settlement (gain) loss                        0                0
Net periodic benefit cost after
curtailments and settlements             $1,240           $2,020

The amount included within other comprehensive income arising from a change in the additional minimum pension liability was $53,000 at December 31, 1999, and $0 at December 31, 1998.

The company acquired XYZ Enterprises on December 31, 1998, including its pension benefit plans. The acquisition increased the pension benefit obligation by $402,000 and the fair value of plan assets by $387,000. The company's pension plans were amended as of December 31, 1998, to reflect changes required by the new collective bargaining agreement. The effect of the amendment was to increase the pension benefit obligation by $1,323,000. On December 31, 1999, the company settled its pension obligation in the plan for previously closed plant A by purchasing annuities from an insurance company. The settlement reduced the pension benefit obligation and the fair value of plan assets by $1,645,000.

The company has multiple nonpension postretirement benefit plans. The health care plans are contributory, with participants' contributions adjusted annually; the life insurance plans are noncontributory. The company recognized a curtailment as of December 31, 1999, due to the closing of plant B. Those former employees of plant B who were not eligible for retirement or within five years of retirement at the time of the closing will not be eligible for postretirement benefits other than pensions from the company. The curtailment reduced the benefit obligation by $5,674,000.

The assumptions used in the measurement of the company's benefit obligation are shown in the following table:

                                                 Pension Benefits
                                                 1999        1998

Weighted-average assumptions as of December 31
 Discount rate                                   7.50%       8.00%
 Expected return on plan assets                  9.00        9.00
 Rate of compensation increase                   5.00        5.00

                                                 Other Benefits
                                                 1999      1998

Weighted-average assumptions as of December 31
 Discount rate                                   7.50%     8.00%
 Expected return on plan assets                   N/A       N/A
 Rate of compensation increase                    N/A       N/A

For measurement purposes, a 10% annual rate of increase in the per capita cost of covered health care benefits was assumed for 1998. The rate was assumed to decrease gradually each year to a rate of 5% for 2005 and remain at that level thereafter.

IMPLEMENTATION GUIDANCE

Statement no. 132 is effective for fiscal years beginning after December 15, 1997, with earlier application encouraged. A company should prepare to implement Statement no. 132 by meeting with its internal or external actuaries to determine what benefit plan information it will disclose

in the financial statements. For comparison purposes, this information also will be needed for one or more prior periods. If prior-period information is not readily available, the company should be ready to disclose the available information and include a list of what is not available.

An actuary should not find it difficult to prepare the reconciliation of benefit obligations and plan assets. In some cases, the actuary has already prepared reconciliations and made them available to the plan sponsor in prior years. When this is not the case, it should be relatively easy for the actuary to reconstruct the reconciliation for prior years.

The effect of a 1% decrease in the health care cost trend rates also should not be difficult for the actuary to prepare. Some actuaries will calculate this with an additional computer run, changing a few parameters to obtain the results under the alternative assumption. Other actuaries will change their computer programs to automatically produce the additional results when they generate the rest of the disclosures. Some actuaries may find it difficult to obtain prior-year results, particularly if they no longer use the software that produced the earlier figures. However, entities probably do not need to disclose this calculation for other than the current fiscal year.

If a plan sponsor is not required to implement Statement no. 132 at its next fiscal yearend, the entity should ask its actuary to prepare that information anyway. It will then be readily available to satisfy prior-year disclosures when the entity finally implements the statement.

Companies also should make compliance with Statement no. 132 a topic for discussion during their next meetings with their external auditors. If decisions on how a company will comply with Statement no. 132 are made in ongoing consultation with the auditors and actuaries, at yearend all interested parties will have the same understanding about the disclosures the company needs to make-simplifying the compliance process for all concerned.

RELATED ARTICLE: EXECUTIVE SUMMARY

* TO IMPROVE EMPLOYERS' FINANCIAL STATEMENT disclosures of pension and other postretirement benefits, the FASB issued Statement no. 132, Employers' Disclosures about Pensions and Other Postretirement Benefits, in February 1998. The statement fine-tunes requirements in previous FASB statements and brings uniformity to disclosure requirements.

* STATEMENT NO. 132 REQUIRES EMPLOYERS TO disclose some information not required before and eliminates other requirements that were not considered useful. This statement is part of an ongoing FASB process to make financial reporting more meaningful to users.

* EMPLOYERS WITH TWO OR MORE PLANS HAVE considerable flexibility under Statement no. 132. An employer can aggregate the required disclosures for all of its plans of the same type or the plans can be disaggregated in groups.

* THE REQUIRED DISCLOSURES HAVE BEEN REDUCED for nonpublic entities under Statement no. 132. The FASB determined users did not require the same level of precision as with public companies in assessing benefit costs and net income.

* STATEMENT NO. 132 IS EFFECTIVE FOR FISCAL YEARS beginning after December 15, 1997, with earlier application encouraged. An entity may have to restate the disclosures made in prior periods in order to display comparable information.

* COMPANIES SHOULD PREPARE TO IMPLEMENT Statement no. 132 by meeting with their actuaries to determine what benefit plan information the company will disclose in the financial statements. Consulting with external auditors also is important so decisions can be made on how the company will comply with the statement.

RANDALL W. LUECKE, CPA, CMA, CEBS, is vice-president--administration and treasurer of International Approval Services in Cleveland. IAS is a division of the Canadian Standards Association. CHET ANDKZEJEWSKI, FSA, EA, is a vice-president and a consulting and research actuary for Aon Consulting in Baltimore. He is a fellow of the Society of Actuaries an enrolled actuary and a member of the American Academy of Actuaries.