More Pension Accounting Changes Coming - Watch Out Multiemployer Plans

Just read a good analysis of what may be coming in pension accounting changes. The FASB issued Statement 158 in 2006, which put net benefit plan balances on the balance sheet. This is supposed to be the start of more changes.

Which we didn't hear much about until yesterday's meetings. One thing that may change in the future is the institution of some accounting standards and disclosure requirements for multiemployer plans. This could be a significant issue for producers in union environments, as the union plans are almost always multiemployer plans.

While it uncertain what will happen, something will happen.

Fair Value Accounting

In September 2006, the FASB issued SFAS No. 157, “Fair Value Measurements.” This standard defines fair value, establishes a framework for measuring fair value in GAAP, and expands disclosures about fair value measurements. The new rule affects over 40 existing accounting standards — including those used to value stock options (FAS 123) and derivatives (FAS 133). And, for calendar year companies, it’s scheduled for implementation beginning the first quarter of 2008.

Advocates say that fair-value accounting will assist users of financial statements in obtaining a far clearer picture of the true economic state of a company. Achieving this “clearer picture,” however, is not without its difficulties. Concepts like exit price, highest and best use, in-use and in-exchange valuation premises, principal or most advantageous market, and the perspectives of market participants...; these are just a few of the concepts that must be understood and are introduced by Statement 157.

What does it mean for a concrete producer? More confusion. I'm a CPA and it is already confusing me.