FASB 87

Published: | Updated: May 5, 2018

Definition - What does FASB 87 mean?

FASB 87 was a statement released by the Financial Accounting Standards Board. After studying 130 reports, the Board offered a way to improve pension reporting. Its results were based on a survey that ended in December of 1990.

Insuranceopedia explains FASB 87

The survey revealed that the most popular pension plans were, in the following order:

  1. The defined benefit plan
  2. The defined contribution plan
  3. The multi-employer plan


The statement required the weighted average assumed discount rate and the rate of compensation for the companies that use these plans. Among the many requirements was the mandatory disclosure of underfunded pension plans. Corporations were also forbidden to use deductions for tax purposes.


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