Influences of Accounting Standard Changes on Pension Reporting – Historical Evidence From the US

This study examines private defined benefit pension plans (DBPPs) from 1999 to 2015. It investigates the influence of Statement of Financial Accounting Standards No. 158: Employers’ Accounting for Defined Benefit Pension and Other Postretirement Plans (SFAS 158) and the Pension Protection Act of 2006 (PPA) on the financial reporting of DBPPs. Previous findings were confirmed (firms increased their projected benefit obligation (PBO) discount rates after PPA/SFAS 158). New evidence suggests this impact materialized within less than one year and was larger for firms with higher PBO. The results indicate a positive relation between pension default risk and increased PBO discount rates; this effect is larger for firms with relatively low PBO discount rates.