Norwalk, Conn. (Dec. 24, 2003) -- The Financial Accounting Standards Board has revised its Statement No. 132, Employers’ Disclosures about Pensions and Other Postretirement Benefits, a revision that sharpens financial statement disclosures for defined- benefit plans.

Companies would now be required to provide greater details about their defined-benefit plans on a quarterly basis including plan assets, benefit obligations and costs and cash flows.

For the first time, companies are required to provide financial statement users with a breakdown of plan assets by category, such as equity, debt and real estate. The expected rates of return and target allocation percentages, or target ranges, for these asset categories also are required in financial statements.

The change replaces existing FASB disclosure requirements for pensions. The project was initiated by FASB earlier this year in response to concerns raised by investors and other users of financial statements about the need for greater transparency of pension information.

The guidance is effective for fiscal years ending after Dec. 15, 2003, and for the first fiscal quarter of the year following initial application of the annual disclosure requirements. For more information go to

-- WebCPA staff

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