Preoccupied with International Paper, the world's largest pulp and paper corporations about when adopt the provisions of Financial Accounting Standards 106 (SFAS 106), "Employers' Accounting for pension benefits, other than pensions." Regulation 106 requires the accrual of significant responsibility to recognize the balance future costs of staff promises to pay for benefits during retirement, and most importantly to pay for health insurance. Compared with the prevailing "pay-as-you-go" accounting, SFAS 106 generally require higher annual costs for "other benefits postemployment" (OPEB). Set at the end of November 1992, a year after the Financial Accounting Standards Board (FASB) today announced the final form of SFAS 106. Application of the new rules was required for fiscal years beginning after December 15, 1992, but As usual, with earlier application encouraged. addition, the adoption of the new standard, companies were given the option of either an admission of liability for accrued benefits at once, or gradually over a period of up to twenty years. Thus, IP faced with decisions of how, when, and how to take SFAS 106. "Hide
by Mary E. Burt, Charles A. Nichols Source: Harvard Business School 10 pages. Publication Date: November 2, 1992. Prod. #: 193060-PDF-ENG
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