scope:

The policies in this chapter apply to Department of Defense Nonappropriated Fund Instrumentalities (NAFIs), their supporting Accounting Offices, and joint-Service NAFI exchanges. This chapter provides basic pension accounting and funding principles and a review of the standards contained within FAS No. 158. Each NAFI and its Certified Public Accounting (CPA) firm providing financial services support should fully review the exceptions and variables associated with pension accounting prior to implementation.

Purpose

This chapter provides requirements to account for defined benefit pension and other postretirement plans for single-employer plans. This chapter does not pertain to Military Department plans that are considered multi-employer. The annual reporting of Pension Plan assets and liabilities shall be in conformance with Financial Accounting Standards Board Statement (FAS) No. 158, "Employers' Accounting for Defined Benefit Pension and Other Postretirement Plans". FAS No. 158 addresses the concern that employers' existing accounting standards for defined benefit pension and postretirement plans fail to produce complete and understandable financial statements. In June 2009, all authoritative issuances of the Financial Accounting Standard Board were codified, to include Financial Accounting Statements (FAS), Interpretations (FIN), Technical Bulletins (FTB), and Staff Positions (FSP). Additionally, many other standard setters, including Accounting Principles Board (APB) Opinions, Accounting Interpretations (AIN), American Institute of Certified Public Accountant (AICPA), and Emerging Issues Task Force (EITF), were sources for the standards. FAS No. 158 cross references to the Codification Topics 715 and 958 and Subtopics 20, 30 and 60.