Wednesday, September 17, 2008

IASB proposed pension accounting rules "unpopular"

US - Employers facing swelling pension plan demand must assume more active influence in the International Accounting Standards Board accounting rule-change process, according to a Watson Wyatt consultant.

"We want to make sure that companies are letting the IASB know their views," said John Steele, a retirement consultant at global consulting firm Watson Wyatt.

"This is the fundamental groundwork for how they're going to proceed."

The IASB's proposed rules shorten the cost measurement period for pension plans in order to follow volatility in the markets. In addition, the rules expect to improve cash balance measurement, place stricter rules on when plan gains and losses are recognised and compile plan performance and experience in the profit and loss account of the company.

Cathy Graham of North Carolina-based The Employers Association said pension plans were already declining in popularity and rules changes would not help the matter.

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