Materiality out in postretirement statements.


The Financial Accounting Standard Board issued a new statement, Employers' Disclosures about Pensions an Other Postretirement Benefits, which changes disclosure rules for public an private companies. (See "Postretirement ED Reforms Disclosure Rules," JofA, Aug.97, page 15.) The key change from the exposure draft is the elimination of the materiality test, according to FASB Practice Fellow Mark Neagle. "The ED said certain nonpublic companie's might be allowed to use a reduced disclosure set The final statement makes a simple public-nonpublic distinction, however. The board believes the more rigorous disclosure standards provide greater information but recognize some information just isn't useful to everyone. Only public companies are required to make a full set of disclosures."

Another significant change from the ED, according to Neagle, deals with the drafts elimination of some requirements in Statements no. 87, Employers' Accounting for Pensions, and no. 106, Employers' Accounting for Postretirement Benefits Other Than Pensions, to present the components of benefit cost. "Some comment letters...

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