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The Financial Accounting Standards Board (FASB) has published an implementation guide to its Statement 106, "Employers' Accounting for Postretirement Benefits Other Than Pensions." SFAS No. 106 requires companies to accrue--or set up a reserve--for retirees' future medical benefits each year. Companies must begin accruals in fiscal years beginning on or after Dec. 15, 1992.
According to FASB practice fellow Kenneth E. Dakdduk, co-author of the guide, "Because of the number of implementation questions we have received and because of the inherent complexities of accounting for postretirement benefits other than pensions, the FASB determined that the guide should be issued as an...