Accounting for Pensions in the Financial Statements of the Plan Sponsor

Date of Submission


Document Type


Degree Name

Master of Science in Accounting




Michael J. Rolleri


Pension trusts, Pension trusts--Taxation--United States

Call No. at the Univ. of New Haven Library

AS 36 .N29 Acc. 1986 no.4



I. Introduction

II. Background

A. History and Growth of Pension Plans

B. Government Regulation of Pension Plans

1. Internal Revenue Service

2. Securities and Exchange Commission

III. Historical Pension Reporting

A. Generally Accepted Accounting Principles

B. Securities and Exchange Commission

IV. Deja Vu i I V. Actuarial Methods

A. Accrued Benefit Cost - Unit Credit Method

B. Projected Benefit Cost Methods

1. Entry Age Normal

2. Individual Level Premium

3. Aggregate Method

4. Attained Age Normal

C. Projected Unit Credit Approach

D. Analysis

VI. The Pension Liability

A. Nature of the Liability

1. Present Obligation

2. Transfer Assets

3. Past Transactions

B. Analogous Issues in GAAP

C. Existence of a Liability

D. Recognition in the Primary Financial Statements

VII. The Pension Asset A. Initiation of the Asset

B. Analogous Issues in GAAP

C. An Alternative

VIII. Market Valuation of the Pension Liability

IX. International Accounting Standards

X. Multiemployer Plans

XI. Plan Terminations

XII. Pension Expense

XIII. A Simple Example

XIV. Conclusion

XV. Subsequent Events

Appendix A: History of Authoritative Pronunciations

Appendix B: Graphic Depiction

Selected Bibliography

  1. Books
  2. Articles in Periodicals
  3. Authoritative Pronouncements
  4. Statements of the Financial Accounting Standards Board and Its Predecessors