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Have changes in pension accounting changed pension provision?: a review of the evidence

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Have changes in pension accounting changed pension provision? a review of the evidence. / Kiosse, P; Peasnell, K V.

In: Accounting and Business Research, Vol. 39, No. 3, 2009, p. 255-267.

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Kiosse, P ; Peasnell, K V. / Have changes in pension accounting changed pension provision? a review of the evidence. In: Accounting and Business Research. 2009 ; Vol. 39, No. 3. pp. 255-267.

Bibtex

@article{c7cb443a9142439c84d065f1ad631d11,
title = "Have changes in pension accounting changed pension provision?: a review of the evidence",
abstract = "The present paper reviews the research evidence on the impact of changes in pension accounting methods on pension provision. We show that decisions to freeze, terminate or convert defined benefit (DB) plans have been driven primarily by a desire to limit contributions, though financial reporting has played a part as well. The introduction of accrual accounting requirements for post‐retirement health care benefits in the US similar in character to those required for DB pension liabilities appear to have motivated some firms to curtail health care provision. Changes in accounting for DB schemes have affected how firms allocate pension plan assets. We conclude that accounting matters, though perhaps not as much as is sometimes claimed. Increased costs of providing DB pensions, coupled with the greater volatility of employers{\textquoteright} cash contributions, have undoubtedly played the major part in the decline of DB schemes.",
keywords = "pension provision, accounting standards , pension regulation , portfolio asset composition , post‐retirement health care",
author = "P Kiosse and Peasnell, {K V}",
year = "2009",
doi = "10.1080/00014788.2009.9663365",
language = "English",
volume = "39",
pages = "255--267",
journal = "Accounting and Business Research",
issn = "0001-4788",
publisher = "Routledge",
number = "3",

}

RIS

TY - JOUR

T1 - Have changes in pension accounting changed pension provision?

T2 - a review of the evidence

AU - Kiosse, P

AU - Peasnell, K V

PY - 2009

Y1 - 2009

N2 - The present paper reviews the research evidence on the impact of changes in pension accounting methods on pension provision. We show that decisions to freeze, terminate or convert defined benefit (DB) plans have been driven primarily by a desire to limit contributions, though financial reporting has played a part as well. The introduction of accrual accounting requirements for post‐retirement health care benefits in the US similar in character to those required for DB pension liabilities appear to have motivated some firms to curtail health care provision. Changes in accounting for DB schemes have affected how firms allocate pension plan assets. We conclude that accounting matters, though perhaps not as much as is sometimes claimed. Increased costs of providing DB pensions, coupled with the greater volatility of employers’ cash contributions, have undoubtedly played the major part in the decline of DB schemes.

AB - The present paper reviews the research evidence on the impact of changes in pension accounting methods on pension provision. We show that decisions to freeze, terminate or convert defined benefit (DB) plans have been driven primarily by a desire to limit contributions, though financial reporting has played a part as well. The introduction of accrual accounting requirements for post‐retirement health care benefits in the US similar in character to those required for DB pension liabilities appear to have motivated some firms to curtail health care provision. Changes in accounting for DB schemes have affected how firms allocate pension plan assets. We conclude that accounting matters, though perhaps not as much as is sometimes claimed. Increased costs of providing DB pensions, coupled with the greater volatility of employers’ cash contributions, have undoubtedly played the major part in the decline of DB schemes.

KW - pension provision

KW - accounting standards

KW - pension regulation

KW - portfolio asset composition

KW - post‐retirement health care

U2 - 10.1080/00014788.2009.9663365

DO - 10.1080/00014788.2009.9663365

M3 - Journal article

VL - 39

SP - 255

EP - 267

JO - Accounting and Business Research

JF - Accounting and Business Research

SN - 0001-4788

IS - 3

ER -