Financial Accounting Blog

Saturday, June 05, 2004

FASB changes accounting rules for Medicare subsidy
FASB’s final guideline requires companies to record the amount of federal subsidy they expect to receive as an "actuarial gain," to be amortized into income over the average working life of their employees rather than recognizing the full effect all at once.

The guideline will take effect for fiscal periods beginning after June 15 for publicly traded companies — the third quarter for companies on a calendar year.