Measuring cash balance defined pension plan obligations.

At its September meeting, FASB added a project to its formal agenda that would produce an interpretation of FASB Statement No. 87, Employers' Accounting for Pensions.

FASB said that since accounting guidance doesn't specifically address the types of arrangements that exist in many "cash balance" pension plans, the project would address the measurement of obligations under such plans.

The project looks to define the characteristics of a cash balance plan, as well as provide an accounting method that can be used consistently by companies to measure pension obligations to employees.

The project comes on the heels of a proposal dubbed Employers' Disclosures about Pensions and Other Postretirement Benefits--an amendment of FASB Statements No. 87, 88, and 106, and a replacement of FASB Statement No. 132, which aims to give investors and the general public more information about how pension plans affect corporate cash flow.