Has anyone done a FAS 158 report for the second year?? Is the (Accrued)/Prepaid Pension Cost still needed and/or reported?? Thanks.

Or better yet, I cannot figure out how to 'convert' a FAS 87 report to the new FAS 158 report. Problem is I cannot understand 'accountant'. I have to know where prepaid/accrued costs, unamortized initial liability, current G/L - where do all of these values go and still be in balance ON THE REPORT?

And I am NOT going to pay the outrageous AICPA fees to purchase the new books. I might just have to let the CPA figure out how to adjust the report! Ha, that's a good one!

We all continue to endure the same frustration -- Namely, FASB 158 is an accounting procedure and we are not finding guidance from the accounting firms. To the contrary, they look to actuaries to advise. I simply provide the disclosures as in FASB87 and believe it is up to them to apply them or tell me what else they require.

rcline - you can download FAS 158 from free from the FASB web site http://72.3.243.42/pdf/fsp_fas158-1.pdf There are also some summaries as well www.fasb.org


I believe the accrued/prepaid has simply been relabled "Net amount recognized in retained earnings". I believe most of the math is still the same, it should just be a few label changes.

I also agree the accountants are clueless. It is more of a change for them because things that were footnotes last year are now balance sheet items. I can calculate the numbers, but I don't know how they are suppose to put them on the books.

Yes, Effen, in particular how is the actuary to compute "deferred tax asset/liablity" offset to "accumulated other comprehensive income." Which reminds me, as a nonaccountant, it took me Avogadro's number of readings of FASB158 before I comprehended that the misnomer "accumulated other comprehensive income" is an equity item!

Andy, the deferred tax asset is just the future tax deductions that could be taken when the contributions are ultimately made. The actuary should not be responsible for that calculation (although we had some clients ask us to do it, so we asked them what their marginal tax rate was, and multiplied that times the AOCI. )

RMB, I scratched my head over the balance "equation" myself. In year ONE, the unfunded minus accrued = AOCI (which equals unamortized stuff, loss, prior service cost, and any initial obligation remaining).

Since, in year 2, we seem to no longer have an accrued cost (the balance sheet liability used to be the accrued cost, but is now just the unfunded). However, the same balance equation must still hold, i.e., unfunded minus accrued = AOCI. So we are still tracking the accrued/prepaid in our worksheets, just not disclosing it in the footnote.

Our footnotes just added the AOCI underneath the current/noncurrent asset/liability, and we added a reconciliation in year 2 of the AOCI from year one to year two.

we added a reconciliation in year 2 of the AOCI from year one to year two.


What did that reconciliation look like, i.e., what are the items included that take you from last year to this year?

I'm attaching a page we've been sending with our reports that has been well received by plan sponsors.

I think (???) I'm asking about the reconciliation in the AOCI from 12/31/07 to 12/31/08 (year 2). What would its components be?

One other unrelated question: Under the 'Change in benefit obligation' section you have a line for assumption changes. Is that required now? Our actuary always included that number in actuarial gain/loss.

In general, the change in AOCI is: add new amounts during the year, less amounts amortized during the year. These are not expicityly disclosed, but:

Page 137 of the FAS 158 book (which are the changes to disclosures under FAS 132) includes the following:

OTHER CHANGES IN PLAN ASSETS and Benefit Obligations Recognized in OCI:

Net loss [i.e., new loss during the year]
Amortization of loss
Prior service cost [i.e. new prior service cost]
Amortization of prior service cost
Total recognized in OCI [sum of the above items]
Total recognized in net periodic benefit cost and OCI [sum of above plus NPPC]

I dont know why they want it disclosed this way. We reconciled the AOCI in our own worksheets just to make sure it was working right, and also did the accrued cost to make sure the balance equation still worked.

On the assumption changes, this is a good idea, but i dont think it is required.