GAAP requires that a company accrue the cost of OPRB's during the periods in which its employees earn the benefits.

Question

Quizplus · Accepted Answer

GAAP (Generally Accepted Accounting Principles) requires companies to recognize the cost of other postretirement benefits (OPRB's) during the periods in which employees earn the benefits. This is known as accrual accounting, where expenses are recognized when they are incurred or earned, rather than when they are paid.

GAAP Requires That a Company Accrue the Cost of OPRB's