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(3) the cost of those benefits recognized in the period. FASB 81
offers examples of appropriate disclosure statements. When
benefits are annually funded based on estimated accruals, a
proper disclosure could state: "The estimated cost of such
benefits is accrued over the working lives of those employees
expected to qualify for such benefits as a level percentage of
their payroll costs". Alternatively, when benefit costs are
expensed as paid, a proper disclosure could state: "The cost of
retiree health care and life insurance benefits is recognized as
an expense as claims are paid". Petitioner's disclosure for
retiree health and life insurance benefits for its 1986 year
stated: "The cost of retiree health coverage is recognized as an
expense when claims are paid. The cost of life insurance
benefits is recognized as an expense as premiums are paid."
The parties have stipulated that the addition to the account
limit for incurred but unpaid claims for the VEBA Trust's year
ended November 30, 1987, if based on the safe harbor limits of
section 419A(c)(5), is $11,193,974 (plus $731,907 of related
administrative costs), and if not based on the safe harbor
limits, is $5,290,729 (plus $261,232 of related administrative
costs).
Discussion
Summary judgment may be granted if the pleadings and other
materials demonstrate that no genuine issue exists as to any of
the material facts and that a decision may be rendered as a
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