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Postretirement Benefits Other than Pensions: A Guide to SFAS 106.

The authors were Financial Accounting Standards Board employees involved in the research and writing of FASB Statement no. 106, Employers' Accounting for Postretirement Benefits Other Than Pensions, one of the most complex standards adopted by the FASB in recent years. Its provisions, effective for fiscal years beginning after December 15, 1992, require employers to recognize and accrue the costs of nonpension postretirement benefits during the working lives of employees expected to receive them.

The authors analyze the new pronouncement in considerable detail, provide flowcharts and detailed suggestions for implementing it as well as exploring the pros and cons of various funding alternatives. Detailed examples of many of the complex calculations required by the statement are provided, along with examples of required disclosures. This is by far the most comprehensive work on Statement no. 106 that has appeared to date. All practitioners should consider adding it to their research libraries.
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Author:Fogg, Stephen L.
Publication:Journal of Accountancy
Article Type:Book Review
Date:Nov 1, 1991
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