FASB Set to Require Interim Disclosure of Pension Data Dow Jones Newswire (06/25/03) p.66; Dale, Arden
The Financial Accounting Standards Board (FASB) has ruled that organizations with defined-benefit pensions will have to begin disclosing some financial details of their plans quarterly. The decision by the accounting rulemaker marks the first time companies will have to brief analysts and investors several times a year about how much they intend to contribute to a plan for a given year. Current guidelines require financial statements on retirement plans only once a year. FASB board member Gary Schieneman defends the decision, saying that interim statements are as important or more important than annual statements "because many more investment decisions are based on the interim." The FASB did not mandate that retirement plan sponsors provide projections to the public on how fluctuations in interest rates or equity markets may impact their pension assets and liability. These decisions are part of a group of new pension disclosure rules that could kick in by the end of this year.