Corporations don't like to estimate future employee salary hikes.
Financial Accounting Standards Board members and the Securities and Exchange Commission's top accountant sparred with employers and actuaries on Wednesday about whether estimated future pension obligations should be reflected on the balance sheet.
In two roundtable discussions on FASB's plan to revamp corporate accounting for defined-benefit plans, the recording of pension liabilities was easily the diciest issue. The board proposes that companies should gauge their liabilities by using a projected benefit obligation (PBO) metric that would require them to project salary increases and other costs far into the future.
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