Financial Accounting Standards Board (fasb) 87
Definition of "Financial accounting standards board (fasb) 87"
New pension-accounting rule created by the Financial Accounting Standards Board. The objective of this rule is to clarify pension accounting so that investors, employers, and employees will know what the assets and liabilities of a particular pension plan are. The rule requires that a company disclose all relevant figures concerning its pension plan on the face of the company's income statement. Previously, the company could bury these figures in the footnotes of the income statement. Also, under the new disclosure requirement, the expected liabilities of the pension plan must be recalculated annually, assuming market interest rates. Thus, a company's pension liabilities each year will rise or fall according to the market interest rate, thereby affecting the company's income statement and balance sheet.
Popular Insurance Terms
Risk incurred by the insurance company after it makes the commitment to make the loan at some future time and the borrower may not accept the loan at that time. ...
Phrase referring to constructive relationship, in which insurance provides society with benefits such as security, savings, encouragement of investment, and reduction in prices of goods to ...
Trade association of commercial insurance brokers whose objective is to further the interests of these brokers through education, lobbying, and adherence to professional ethics. ...
Paid-in surplus, revaluation surplus, and donated surplus. This surplus includes all sources of surplus with the exception of earned surplus. ...
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Risk-creating device as compared with insurance, which is a risk-reducing or -eliminating device. This is a form of speculative risk. ...
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Tables used to determine the present value of a sum in the future by taking into consideration the assumed interest rate and time period involved. ...
Cost of replacing damaged or destroyed property with comparable new property, minus depreciation and obsolescence. For example, a 10-year-old living room sofa will not be replaced at ...
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