Statement of Financial Accounting Standards No. 112

Statement of Financial Accounting Standards No. 112 FAS112 Status Page FAS112 Summary Employers’ Accounting for Postemployment Benefits (an amendment of FASB Statement No. 5 and 43) November 1992 Financial Accounting Standards Board of the Financial Accounting Foundation 401 MERRITT 7, P.O. BOX 5116, NORWALK, CONNECTICUT 06856-5116 Copyright © 1992 by Financial Accounting Standards Board. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the Financial Accounting Standards Board. Page 2 Statement of Financial Accounting Standards No. 112 Employers' Accounting for Postemployment Benefits an amendment of FASB Statements No. 5 and 43 November

1992 CONTENTS Paragraph Numbers Introduction ....................................................................................................................1–3 Standards of Financial Accounting and Reporting: Scope 4-5 Accounting for Postemployment Benefits....................................................................6 Disclosures ...................................................................................................................7 Amendments to Existing Pronouncements ............................................................8–11 Effective Date and Transition.....................................................................................12 Appendix: Background Information and Basis for Conclusions................................13–25 Page 3 Copyright © 1992, Financial Accounting Standards Board Not for redistribution FAS 112: Employers' Accounting for Postemployment Benefits an amendment of FASB Statements No. 5 and 43 FAS 112 Summary This Statement establishes accounting standards for employers who provide benefits to former or inactive employees after employment but before retirement (referred to in this Statement as postemployment benefits). Postemployment benefits are all types of benefits provided to former or inactive employees, their beneficiaries, and covered dependents. Those benefits include, but are not limited to, salary continuation, supplemental unemployment benefits, severance benefits, disability-related benefits (including workers' compensation), job training and counseling, and continuation of benefits such as health care benefits and life insurance coverage. This Statement requires employers to recognize the obligation to provide postemployment benefits in accordance with FASB Statement No. 43, Accounting for Compensated Absences, if the obligation is attributable to employees' services already rendered, employees' rights to those benefits accumulate or vest, payment of the benefits is probable, and the amount of the benefits can be reasonably estimated. If those four conditions are not met, the employer should account for postemployment benefits when it is probable that a liability has been incurred and the amount can be reasonably estimated in accordance with FASB Statement No. 5, Accounting for Contingencies. If an obligation for postemployment benefits is not accrued in accordance with Statements 5 or 43 only because the amount cannot be reasonably estimated, the financial statements shall disclose that fact. This Statement is effective for fiscal years beginning after December 15, 1993. INTRODUCTION 1. This Statement establishes standards of financial accounting and reporting for the estimated cost of benefits provided by an employer to former or inactive employees after employment but before retirement (referred to in this Statement as postemployment benefits). Postemployment benefits are all types of benefits provided to former or inactive employees, their beneficiaries, Page 4 Copyright © 1992, Financial Accounting Standards Board Not for redistribution and covered dependents. Inactive employees are those who are not currently rendering service to the employer and who have not been terminated. They include those who have been laid off and those on disability leave, regardless of whether they are expected to return...

Website: www.amac.org.mx | Filesize: 150kb
No of Page(s): 13
Download Statement of Financial Accounting Standards No. 112.pdf