The Accounting Authorities Are Considering Changing the Rules for Accounting

The accounting authorities are considering changing the rules for accounting for pensions. Previously actuarial gains and losses in obligations and experience gains and losses in pension fund assets were amortized over many years. Current thinking is to require these gains and losses to be reported in the year incurred. How might this rule change affect a company's share price?

A) Share prices would increase due to improved earnings as gains are reported.
B) Share prices would become riskier due to increased earnings volatility.
C) Share prices would not be much affected by accounting changes.
D) Share prices would become more predictable without the amortization expenses.
E) Share prices would become more randomized as pension expenses are included the financials.