Interpreting the FAS 87 Minimum Liability Adjustment

Document Type



Published by Wiley-Blackwell in the Journal of Corporate Accounting and Finance, volume 1 issue 3, 1990. Bryant users may access this article here.

Publication Source

Journal of Corporate Accounting and Finance


The article examines the impact of the minimum liability adjustment on the organization's balance sheet and to evaluates the subsequent impact on measures of corporate financial strength. It provides background information, examines the minimum liability computation, and presents recognition procedures for the minimum liability adjustment. The balance sheet accounts potentially affected are illustrated and discussed. It also addresses the impact of minimum liability accruals on financial statement analysis with examples of how the accruals impact financial structure, coverage, and profitability ratios.