Effective Classroom Presentation of FAS 87 Footnote Reconciliation

Document Type



Published by the American Accounting Association in Issues in Accounting Education, volume 3 issue 2, 1988. Bryant users may access this article here.


American Accounting Association

Publication Source

Issues in Accounting Education


This paper introduces a visual presentation format to facilitate the teaching of one of the more difficult areas of pension plan disclosure, the footnote reconciliation of the funded status to the balance sheet accrual (reconciliation). The visual approach demonstrated in this paper is beneficial in that it enhances the explanation of the reconciliation by graphically depicting the impact of each component on the reconciliation. The graphic approach should make the reconciliation more readily interpretable and, therefore, more comprehensible by students. Given the overall complexity of the pension area, providing an efficient vehicle for teaching the reconciliation concepts is particularly important. The format presented provides an efficient vehicle for teaching the rather complex reconciliation concepts of FAS 87.