Which of the following is not true related to OPEBs?

Question

Quizplus · Accepted Answer

This statement is not true related to Other Post-Employment Benefits (OPEBs). Before the issuance of Statement of Financial Accounting Standards (SFAS) No. 106, which is now codified as Accounting Standards Codification (ASC) 715-60, employers typically accounted for OPEBs on a pay-as-you-go basis, rather than an accrual basis. This meant that the costs of providing post-employment benefits were recognized as expenses when the payments were made to retired employees, rather than when the employees earned the benefits during their active service. SFAS No. 106, issued by the Financial Accounting Standards Board (FASB), changed this approach by requiring employers to recognize the expected cost of providing OPEBs to employees during their active service period, thus recognizing the obligation on an accrual basis.

Which of the Following Is Not True Related to OPEBs