Changes in Accounting Practices Will Drive Pension Paradigm Shift

Douglas Fore


Recent events have prompted a growing awareness of the need for internationally comparable pension accounting standards. This chapter examines recent and anticipated changes in worldwide accounting practices, and our focus is on the issue of whether pension accounting standards are consistent with the economics of pension finance. We examine trends toward convergence and place particular emphasis on the movement to fair value accounting standards. We also analyze potential impacts of likely accounting changes and transition rules on pension funding in the US and other countries.