Unsmoothing Defined Benefit Pension Plans
Washburn University. School of Business
Kaw Valley Bank
This case requires students to consider the alternative accounting policies that can be used for defined benefit pension plans. Students inductively consider two different company policy issues: market-related plan asset value and the use of the corridor method associated ,vith net gains and losses. Students compare up to five alternatives drawn from combinations of the policy choices and provide a Codification-based justification for each alternative as well as an explanation for the empirical differences they find. This case allows students to practice technology agility, data visualization, and professional research and writing skills.