Accounting For Pensions

SFAS No. 87, “Employers’ Accounting for Pensions” (“SFAS 87″), establishes standards for reporting and accounting for pension benefits provided to employees. SFAS No. 158, “Employers’ Accounting for Defined Benefit Pension and Other Postretirement Plans an amendment of FASB Statements No. 87, 88, 106, and 132(R)” (“SFAS 158″), requires recognition of the funded status of a defined benefit plan in the statement of financial position as an asset or liability if the plan is overfunded or underfunded, respectively.

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