Financial Accounting Standards Board today voted to begin a project to remake FAS 87, the pension accounting rule. Later this year, FASB will issue an exposure draft on a proposed new pension accounting rule for public comment, said Sheryl L. Thompson, manager-public relations. She couldnt give a more specific timeframe.
The board acted in response to comments by investors and analysts who want more disclosure; many say deficiencies in FAS 87 distort operating earnings by including financial items related to pension cost and investments.
The board also voted to undertake a project to consider accounting for stock-based compensation as a corporate expense, among related issues. It will issue an exposure draft on the options project for public comment, also in late 2003.