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FASB 110: fair value reporting for investment contracts.

The Financial Accounting Standards Board's recently issued Statement no. 110, Reporting by Defined Benefit Pension Plans of Investment Contracts, requires a defined benefit pension plan to report investment contracts issued by insurance enterprises or other entities at fair value.

Statement no. 110 amends Statement no. 35, Accounting and Reporting by Defined Benefit Pension Plans, which required plan investments other than contracts with insurance companies to be reported at fair value. Statement no. 110 requires all investment contracts, including those with insurance companies, to be reported at fair value except insurance contracts incorporating mortality or morbidity risk at contract value.

The new statement is effective for fiscal years beginning after December 15, 1992. However, it need not be applied to deposit administration and immediate participation guarantee contracts entered into before March 20, 1992.

Copies of Statement 110 are available for $10 prepaid from the FASB Order Department, 401 Merritt 7, P.O. Box 5116, Norwalk, Connecticut 06856-5116. For information on quantity discounts, call (203) 847-0700, ext. 555.
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Publication:Journal of Accountancy
Article Type:Brief Article
Date:Nov 1, 1992
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