The Fasb Has Issued

In: Business and Management

Submitted By vanianatasha
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The FASB has issued SFAS No. 106, “Employers' Accounting for Postretirement Benefits Other Than Pensions” (see FASB ASC715) and SFAS No. 112, “Employers' Accounting for Post employment Benefits” (see FASB ASC 712). These pronouncements required companies to change from accounting for benefits, such as health care, that are paid to former employees during retirement on a pay-as-you-go basis to recognizing the expected cost of benefits during employment. As a result, companies must accrue and report expenses today, thereby reducing income and increasing liabilities
Some have argued that these pronouncements will cause employers toreduce or eliminate postretirement and postemployment benefits. It is notnecessary for you to know the particulars of implementing either of thesestandards to address the issues described below

Should financial reporting requirements affect management's decision-making process? Discuss. Should management reduce oreliminate postretirement or postemployment benefits simply because of the new pronouncement? Discuss.
Tidak, financial reporting requirement seharusnya tidak mempengaruhi proses pengambilan keputusan. Mengapa? Karena financial reporting, sebagai alat untuk membantu proses pengambilan harus bersifat objektif.
Menurut SFAC No 5, financial report harus dapat diandalkan, relevan dan tidak mempedulikan efek standar akuntansi pada pihak tertentu. Informasi hanya valid ketika informasi tersebut tidak BIAS
Tidak. Adanya employee benefit yang diperoleh oleh pekerja selama suatu periode waktu seharusnya dicatat dalam financial report, walau hal tersebut meningkatkan expense pada time period tersebut.

Jawaban soal nomor 2
Social costs kemungkinan besar akan ada. Manager mungkin mengurangi ato menghilangkan post retirement benefits agar dapat meningkatkan net income. Hal ini tentunya bukan hal yang seharusnya tidak dilakukan, tetapi…...

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