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A Smoother Approach to Pension Accounting

The IASB's proposed rules for pension accounting could dampen the effect of asset gains and losses on the bottom line.

Alix Stuart, | US
May 4, 2010

More conformity to Wall Street expectations

They've been abused for so many years as cash-ready reserves for any number of purposes ( yet heroically during the New York City budget crisis of 1972 ) ( and that was a public pension fund )and as off-balance-sheet accounting items, that even reclassification from operating income to other comprehensive income to reduce risks wouldn't make that much of a difference.

Posted by Michael Hemingway | May 05, 2010 02:35 pm


This encourages managers to sell appreciated assets to record a profit (i.e., move it from OCI to operating or investing profit). Managers doing just this, selling appreciated assets to record an accounting profit, is what kicked off the cry for fair value accounting many years ago.

Posted by Roland Cycan | May 05, 2010 11:46 am

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