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FASB 158: Suspension Cost Analysis

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Companies are expected to abide by the rules set forth dealing with reporting and keeping track of all documentation that has to do with employees’ benefits, pension plans, and anything else of the like. Pension plans can vary from employer to employer, but the overall system in accounting for the pension expenses are all naturally the same. According to Shim, FASB 158 outlines a certain procedure on how an employers should amortize for pension expenses (151).
Shim goes on to explain that when it comes to dealing with pension expense, there are several important factors to take into consideration. One of these essential components is the recognition of prior service cost. Prior service cost can be characterized as being the overlaying cost

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