Financial Accounting Blog

Tuesday, December 02, 2003 reports companies will face more pension scrutiny with the pending accounting rule which would require disclosure of investment strategies.
All U.S. companies with traditional retirement plans would have to start disclosing the investment strategies they use in the plans under a pending rule, accounting rule-makers said this week. Under the new rule, which is expected this year, companies will have to make public the proportion of stocks, bonds, real estate, private equity and other investments they hold in their pensions. Under the adopted method, a company would have to say how much it expects to pay during each of the next five years and also report total expected payments for the five years after that initial period.