Companies with defined-benefit pension plans for their workers and retirees may be required to disclose information about their plans impact on earnings much more frequently, according to a recent report from the Wall Street Journal.
The Financial Account Standards Board, which is based in Norwalk, Conn. decided this week to require those companies to report the figures on a quarterly basis. They currently are only mandated to do so on an annual basis.
The change is part of a move by the NASB to tweak the current pension accounting system. Formal drafts of several pension-accounting rule changes could be available as soon as August, and the rules could go into effect as soon as December, according to the Journal report.
Critics of the current system say the data, as reported, is often old and provides little or inadequate insight into a companys income statement.
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