Description: This paper builds on the analysis of Berin and Lofgren of 'Financial Accounting Standard No. 87', with regards to pension plans. The relationships between the quantities defined in FAS 87 are further explored, and the analysis is extended to cover FAS 88, 'Employers Accounting for Settlements and Curtailments of Defined-Benefit Pension Plans and for Termination Benefits'.

Description: This paper uses economic principles to analyze alternative recognition schemes for end-of-period retirement plan liabilities the candidates, using U.S. nomenclature, are the vested benefit obligation VBO, the accumulated benefit obligation ABO and the projected benefit obligation PBO.