"The study, by the Milliman actuarial firm, of the 100 largest companies with pension plans, showed that most had understated their obligations even though they complied with the current rules.
That included not only weak companies like airlines and automakers but also strong ones....Over all...adopting the proposed accounting change would wipe away about 8 percent of corporate America's net worth, revealing hidden weaknesses all across corporate America....
The new rule, proposed by the Financial Accounting Standards Board, would eliminate the pension numbers that now appear on corporate balance sheets...would replace those figures with current, market-based numbers."
Friday, April 14, 2006
Pension Rule Could Lower Net Worths - New York Times
Pension Rule Could Lower Net Worths - New York Times: