Fasb Case Study

342 Words2 Pages
The FASB had many reasons for changing the rules for pension accounting. Statement No. 87 enacted most of those changes. The FASB does a thorough job of summarizing the statement on its website. The FASB states that 1966 was the year when pension plans and corresponding pension assets and liabilities grew dramatically. It would no longer be appropriate to account for pensions the same way. The Employee Retirement Income Security Act of 1974 was another catalyst for the change in rules. According to United States Department of Labor, the act required private companies with pension plans to disclose more useful information to employees, established fiduciary duty, and established the legal process for employees suing for pension benefits. Inflation