Standards
Summary of Statement No. 74
Accounting for Special Termination Benefits Paid to Employees (Issued 8/83)
Summary
This Statement applies when an employer offers for a short period
of time special termination benefits to its employees. The employer
is to recognize special termination benefits as a liability and an
expense when the employees accept the offer and the amount can be
reasonably estimated. The amount to be recognized includes any
lump-sum payments and the present value of any expected future
payments. If reliably measurable, certain changes in the estimated
costs of other employee benefits are also to be included in
measuring the expense.
This Statement applies for special termination
benefits offered after June 30, 1983, with earlier application
encouraged. Restatement of previously issued financial statements
is permitted.
Additional Details
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