Financial Reporting Alert 22-4, Financial Reporting Considerations Related to Pension and Other Postretirement Benefits

Published on: 22 Nov 2022

This Financial Reporting Alert highlights some of the important accounting considerations related to the calculations and disclosures entities provide under U.S. GAAP in connection with their defined benefit pension and other postretirement benefit plans. The alert includes discussion of:

  • The potential impact of inflation and rising interest rates, the Inflation Reduction Act, and the COVID-19 pandemic on certain significant actuarial assumptions that affect the measurement of defined benefit obligations.
  • Considerations related to an entity’s (1) discount rate selection method, (2) use of a hypothetical bond portfolio, and (3) use of a yield curve.
  • SEC staff views on registrants’ (1) disclosures of critical accounting policies and estimates and (2) use of non-GAAP measures.


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