The attribution approach required by SFAS 106 for postretirement health care plans is to assign:

Question

Quizplus · Accepted Answer

SFAS 106 requires the attribution approach to assign an equal fraction of the estimated postretirement benefit obligation (EPBO) to each year of service from the employee's hire date to the employee's full eligibility date. This method is known as the straight-line attribution method. Therefore, option D is the correct answer. Option A and B are incorrect since they do not consider the employee's eligibility date. Option C is also incorrect because it refers to the accrued benefit obligation (ABO) instead of the EPBO.

The Attribution Approach Required by SFAS 106 for Postretirement Health