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Defined Pension Benefits and Other Post Retirement Benefit Obligations Project

Tuesday, June 27, 2006

The objective of this project is to comprehensively reconsider guidance in FASB Statements No. 87, "Employers' Accounting for Pensions", No. 106, "Employers' Accounting for Postretirement Benefits Other Than Pensions", and No. 132, "Employers' Disclosures about Pensions and Other Postretirement Benefits", in order to improve the reporting of pensions and other postretirement benefit plans in the financial statements by making information more useful and transparent for investors, creditors, employees, retirees, donors and other users. An exposure draft that addresses such issues was issued on March 31, 2006. The FASB issued Statement No. 158 – “Employers Accounting for Defined Benefit Pension and Other Postretirement Plans” on September 15, 2006. A copy of the statement can be found on FASB’s website at www.fasb.org. Once on the home page, proceed to click on Pronouncements & EITF abstracts on the left hand side of the page. Look for the reference of FASB Standard No. 158.

The Financial Reporting Committee (FRC) is a standing advisory committee for the Institute of Management Accountants (IMA). The committee is comprised of senior financial executives from companies of various sizes. The committee addresses IMA's views on technical issues. The FRC submitted a comment letter to respond to the FASB's exposure draft. The comment letter addressed all of the pertinent issues addressed in the exposure draft. A copy of the comment letter can be found on IMA's website.

The FASB hosted a roundtable discussion at its headquarters on June 27, 2006 to discuss issues addressed in constituents' comment letters about the exposure draft. Nancy Schroeder, CPA, from Beacon Financial Consulting, LLC served as the representative on behalf of FRC at the roundtable to discuss the committee's views about issues addressed in the exposure draft as mentioned in the comment letter. Linda Devonish- Mills, CPA, IMA's new Director of Professional Advocacy observed the roundtable.