FASB Pensions

Decent Essays
This thesis will discuss the proposed changes of pensions and the new updated leases issued by FASB, which are important issues for entities such as corporations. FASB is the Financial Accounting Standards Board. It is a seven-member independent board consisting of accounting professionals who establish and communicate standards of financial accounting and reporting in the United States. FASB was created to provide users accurate information in one location. Recently, FASB developed the FASB Codification Research System: a web-based system allowing registered users to electronically research accounting issues. Accounting standards are important. For example, if accounting is considered as the language of business, accounting standards are its grammar. Properly developed and implemented, they can encourage business expansion and help regulate the economic system. High-quality accounting standards can facilitate the flow of information from businesses to a range of different users. These include investors, banks, creditors, the revenue commissioners, regulators, employees and the general public. The availability of accounts prepared in accordance with recognized accounting standards encourages trade by promoting confidence in businesses. FASB has played an important role when it comes to pensions, because of…show more content…
The changes in pensions and leases have been proposed by FASB to provide more useful information to investors and credits. This paper will analyze the factors that led to the changes in both areas including the four types of pensions, the components of the net benefit expenses, the importance of leases in financial accounting and some background on the controversy, and the pros and cons of the proposals for pensions and the leasing standards. Finally, this paper will discuss how the changes compare to International Financial Reporting Standards (IFRS)
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