采用财务会计准则第158号当年养老金调整转型及其他综合收益内容的价值相关性【外文翻译】

1、本科毕业论文设计外 文 翻 译外文题目 Value-relevance of Pension Transition Adjustments and Other Comprehensive Income Components in the Adoption Year of SFAS No. 158 外文出处 Review of Quantitative Finance and Accounting 外文作者 Santanu Mitra and Mahmud Hossain 原文：Value-relevance of Pension Transition Adjustments and Other

2、 Comprehensive Income Components in the Adoption Year of SFAS No. 158In the present study, we examine the value-relevance of pension transition adjustments and other comprehensive income (OCI) components in the initial adoption year of Statement of Financial Accounting Standard (SFAS) 158Employers A

3、ccounting for Defined Benefit Pension and Other Postretirement Plans. Using a sample of 697 Standard and Poor (S&P) firms with the fiscal year ending on December 31, 2006, we perform several cross-sectional regression analyses to test the value-relevance of transition adjustments and OCI compone

4、nts in presence of various earnings measures. The results indicate that there is a negative relationship between both the level and change in stock returns and the magnitude of pension transition adjustments. We also find earnings measures and some OCI components are significantly associated with st

5、ock returns. When analyzed separately, we find our main results are mostly confined to the sample large S&P 500 firms. We do not find any result for the S&P mid-cap and small-cap firms. The overall results suggest the stock market negatively reacts to the adverse impact of SFAS #158 pension

6、transition adjustments on net worth and future cash flows when the impact is substantial in its magnitude in dollar terms. The study further provides useful insight into the information processing by documenting that the market evaluates accounting information more effectively when such information

7、is recognized in the financial statements rather than disclosed only in the financial footnotes.This study examines the value-relevance of the transition adjustments relating to pension and post-retirement benefits and of other comprehensive income (OCI)1 components following the adoption of Stateme

8、nt of Financial Accounting Standard (SFAS) No. 158Employers Accounting for Defined Benefit Pension and Other Postretirement Plans,which amends the earlier pension accounting rules under SFAS Nos. 87, 88, 106 and 132R.SFAS 158 requires companies to: (1) fully recognize the over or under-funded status

9、 of pension and other post-retirement benefits under defined benefit plans on the balance sheets on the basis of projected benefit obligations (PBO) and fair value of plan assets and (2) measure the assets and liabilities as of the end of the fiscal year. Companies need to aggregate the status of al

10、l over-funded (under-funded) plans and recognize the amount as an asset (liability) in statements of financial position. The publicly traded companies are required to apply the provisions of SFAS 158 and the related recognition rules to their financial statements for the fiscal year ending after Dec

11、ember 15, 2006.2 Financial Accounting Standards Committee of American Accounting Association has opined that SFAS 158 is a significant improvement over current reporting. Recognizing the funded status of pension plans in the balance sheet would better provide information about the underlying economi

12、cs of a companys pension and other post employment benefits (OPEB) plans. This would eliminate the need to make necessary reconciliation of pension information on the basis of disclosure in financial footnotes,which many financial statement users do not see or understand.Before adopting SFAS 158, th

13、e over or under funded status of the pension and postretirement benefit plans were disclosed in the financial footnotes. While issuing SFAS 158,Financial Accounting Standard Board (FASB) argued disclosure of the under/over funded status of defined benefit plans in financial footnotes caused users pr

14、oblems in assessing an employers financial position and its ability to satisfy plan obligations. Footnote disclosure is not a proper substitute for recognition of the funding status in the statement of financial position (Hurtt et al. 2007). But as a result of SFAS 158 rules, the net pension assets

15、or liabilities will move up to the financial statements from a complex and detailed footnote tothe balance sheet, a change which is expected to improve the clarity of reported information.SFAS 158 further requires business entities to record previously unrecognized gains or losses, prior service cos

16、ts or credits and any transition assets or obligations as a direct adjustment (net of tax) to accumulated other comprehensive income (AOCI) for the fiscal year ended after December 15, 2006.3 The total adjustment amount reported as a separate AOCI item in stockholders equity is termed as pension tra

17、nsition adjustment in this paper. This is a lump-sum one-time adjustment in stockholders equity to make the net worth of a corporation fully reflecting the effect of the funded status of the plan. So, due to the retroactive computation of additional charges/credits, SFAS 158 transition adjustments c

18、ould have substantial implications for the net worth and future cash flows of implementing firms. In fact, various professional agencies anticipated that the SFAS 158 transition adjustments would significantly increase liabilities accompanied by considerable erosion of stockholders equity of the rep

19、orting entities.4 Investors are now better able to assess the future cash flow consequence of increased liabilities/assets that are reflected by the transition adjustments and recognized in the financial statements. In this respect, SFAS 158 adjustment is expected to have a major valuation implicati

20、on for reporting entities in its initial adoption year, 2006. In Appendix, we provide examples of the dollar effect of retrospective pension transition adjustment and its effect on the financial statements for the fiscal year end December 31, 2006 for five large-cap sample firms, e.g., Boeing Corp.,

21、 Chevron Corp., Lockheed Martin Corp., Caterpillar Inc. and Kraft Foods, Inc., operating in different industries.The current study focuses on how the capital market evaluates the potential economic effect of change in net worth caused by pension transition adjustments on future cash flows of the rep

22、orting entities. We are motivated to undertake an association study on the premise that it would produce useful insights into the information processing by the market with respect to pension transition adjustments and OCI components in the SFAS 158 adoption year, especially when the related accounti

23、ng information is directly recognized in the financial statements rather than merely disclosed in financial footnotes and when such adjustment makes the associated future cash flow consequence more precise and visible for the investors. We examine whether the capital market evaluates the pension tra

24、nsition adjustments made by the SEC registrants in the adoption year of SFAS 158 while incorporating information about reported earnings and OCI components in pricing equity securities. If the pension transition adjustments have the effect of reducing stockholders equity accompanied by a decline (in

25、crease) in assets (liabilities) for previously underfunded plans, we expect that the transaction effect of SFAS 158 will be to reduce firm value. However, if the pension plans are over-funded, the transition adjustment will have the opposite effect, which is to increase stockholders equity accompani

26、ed by an increase in assets or decrease in liabilities. In this analysis, we also examine the value-relevance of OCI components in the SFAS 158 adoption year as a complement to the mixed evidence produced by prior research about their implication for stock price changes.The test results suggest, in

27、general, the stock market negatively reacts to the magnitude of pension transition adjustments. We find that cross-sectional differences in both the level and change in stock returns are significantly negatively associated with the absolute value of pension transition adjustments in presence of OCI

28、components and other earnings measures. However, such inverse relationship is mainly confined to the sample standard and poor (S&P) large 500 firms. Some OCI components and earnings measures in the analyses are also consistently significant at different levels. However, we do not find any associ

29、ation between the stock returns and transition adjustments for the sample S&P midcap and small-cap firms. Based on the results, we suggest capital market incorporates the pension transition adjustment information in stock prices especially for the large-cap firms in the initial adoption year. Th

30、e sheer magnitude of the adjustment amounts makes a substantial difference in the information value of adjustment. Therefore, the market valuation of its adverse effect on the net worth and future cash flows of the SEC registrants in the initial adoption year. The result also supports the notion tha

31、t recognition of accounting information in financial statements rather than only disclosure in financial footnotes increases its usefulness to users.This study demonstrates investors could evaluate the potential effect of the previously unrecognized pension and post-retirement liability/asset adjust

32、ments that are reported in financial statements as a one-time adjustment. In this respect, it also shows that the new SFAS No. 158 increases the usefulness of pension and post-retirement benefit information to financial statement users by requiring companies to recognize the full-funded status of th

33、eir defined benefit plans in financial statements.The prior research on recognition versus disclosure of information in financial statements produce mixed evidence. Some studies document financial statement users also incorporate information disclosed in financial footnotes (e.g., Aboody 1996; Davis

34、-Friday et al. 1999; Gordon and Joos 2004). Other studies find evidence that footnote disclosure of pension and postretirement benefit obligations are value-relevant to investors (e.g., Barth 1991; Choi et al. 1997; Fairfield and Whisenant 2001). However, Hirst and Hopkins (1998) show that professio

35、nal analysts could discover earnings management more easily when earnings components are clearly reported in an income statement rather than when further analysis is required. They indicate disclosure versus recognition is an important issue with respect to the valuation implication of comprehensive

36、 income items. Hirst et al. (2004) further document recognition rather than disclosure of fair estimates is more likely to enable equity analysts to reach the appropriate risk and value judgment decisions. Ahmed et al. (2006) find recognized derivative fair values are associated with stock prices, w

37、hereas the disclosed fair values are not. Finally, Libby et al. (2006) show in both stock compensation and lease setting, audit partners require greater correction of misstatements in recognized amounts than in equivalent disclosed amounts. They suggest the actual choice to disclose rather than to r

38、ecognize can reduce information reliability.Several prior studies document investors use pension information to price equity shares (e.g., Landsman 1986; Barth 1991; Barth et al. 1992; Amir 1993). Some other studies however, find such information is not fully impounded in stock prices. Landsman and

39、Ohlson (1990) suggest market under-reacts to the pension information. Hand et al. (1997) find little evidence that differences in valuation multiples exist on the basis of the funding status of the pension and postretirement benefit plans. Furthermore, Picconi (2006) suggests analysts do not explici

40、tly incorporate the information from pension plan parameter changes as disclosed in pension footnotes into their initial forecasts so that these changes predict future earnings surprises. He finds analysts and investors only gradually incorporate the pension information into prices and forecasts as

41、they observe the effect of pension plan changes on subsequent quarterly earnings. But Amir and Gordon (1996) contend equity values are consistent with stock markets consideration of reported post-retirement benefit liabilities at face value without adjusting for differences in assumptions.The presen

42、t study examines the valuation implication of pension transition adjustments and OCI components in the initial adoption year of SFAS 158 in presence of earnings measures for a sample of S&P large, mid-cap and small-cap firms. By performing several cross-sectional regression analyses, we find a n

43、egative association between both the level and change in stock returns and the magnitude of pension transition adjustments. We also observe reported earnings proxy and some OCI components such as foreign currency translation adjustment and pension liability adjustment are significant in the analyses

44、. When analyzed separately, we find the main results are mostly confined to the sample large S&P 500 firms. We do not observe any significant relationship between stock returns and pension transition adjustments for the S&P mid-cap and small-cap firms. The results suggest capital market nega

45、tively reacts to the adverse impact of pension transition adjustments following SFAS 158 on the net worth and potential future cash flows of a firm when such impact is of substantial magnitude in dollar terms. The market does not respond to the adjustment amount when it perceives its impact as incon

46、sequential. Hence, the stock price changes take place in varying degrees for the sample firms depending on the dollar effect of the transition adjustment amount. The study produces a useful insight into the information processing by financial statement users by documenting that capital market evalua

47、tes complex accounting information more effectively when such information is recognized in the financial statements rather than disclosed only in the financial footnotes. In this respect, the new SFAS No. 158 improves the usefulness of pension and post-retirement benefit information to financial sta

48、tement users by requiring recognition of the full funded status of the defined benefit plans in financial statements of the SEC registrants.Source: Santanu Mitra and Mahmud HossainValue-relevance of Pension Transition Adjustments and Other Comprehensive Income Components in the Adoption Year of SFAS

49、 No.158JReview of Quantitative Finance and Accounting，2021，333：279-301译文：采用财务会计准那么第158号当年养老金调整转型及其他综合收益内容的价值相关性在本研究中，我们对首次采用第158号财务会计准那么公告当年养老金调整转型以及其他综合收益组成局部的价值相关性进行了检验。使用对2006年12月31日结束的财政年度的697标准普尔公司为样本，我们执行一些横截面回归性分析，以测试措施的各种收入存在的价值转型的调整和其他综合收益组件的相关性。这些结果说明两者之间是有变化的和股票收益以及过渡养老金的调整幅度有负相关关系。我们也发现收

50、入措施和一些其他综合收益组件与股票收益率显著相关。当我们分开分析时，我们发现我们的主要结果多半局限于大样本标准普尔500家公司，我们没有找到任何有关标准普尔中型股和小型股的公司的结果。总的结果说明，股市的负面反映财务会计准那么第158号养老金过渡调整的净资产对未来现金流量产生不利影响的冲击时，在其按美元计算幅度很大。这项研究进一步提供了对信息处理的记录，在市场会计信息能更有效地评估这些资料时，在财务报表中确认，而不是只在财务脚注中披露有益的见解。公开交易的公司都需要申请后，按照财务会计准那么第158号的规定和有关规那么，以确认结束的财年的财务报表。财务会计准那么委员会美国会计协会认为，财务会计

51、准那么第158条是一个重大的完善目前报告的条款，它认识到在资产负债表的退休金方案的资金状况将更好地提供有关公司的退休金及其他退休后就业的福利方案的根本经济信息。这将消除在金融脚注披露的根底上对养老金信息作出必要和解的需要，但许多财务报表使用者并不能看到或懂得。在财务会计准那么第158号通过之前，超过或低于退休后的养老金和福利方案的资金状况都是在财务脚注中被披露的。虽然发行财务会计准那么第158号，财务会计准那么委员会争论披露下/上在金融脚注界定福利方案的资金状况造成了评估一个雇主的财务状况和方案能力，以满足用户的义务问题。脚注披露不作为身份识别的资金在财务状况表的适当代用品赫特等，2007，但

52、作为财务会计准那么第158条规那么的结果，净退休金资产或负债将从复杂的财务报表和详细的注释上升到资产负债表，预计将提高报告信息的清晰度。财务会计准那么第158条进一步规定商业实体记录以前未确认的收益或损失，前期效劳本钱或信贷资产或任何过渡或义务，直接调整税后累计其他综合收入截至12月15日后的财政年度。调整的总金额累计其他综合收入作为一个单独的报告中股东权益工程为养老金的调整，本文称为过渡。这是一笔一次性股东权益，使其充分反映了该方案的资金状况的影响对公司的净资产调整。因此，由于追溯计算的附加费/学分，财务会计准那么第158条过渡调整可能对净资产和实施企业未来现金流量有重要影响。实际上，各类专

53、业机构预计，财务会计准那么第158条过渡调整将大大增加对股东权益的报告实体相当的侵蚀陪同负债。投资者现在能够更好地评估未来现金负债增加，这是反映了调整和转型期财务报表中确认的资产流动的结果。在这方面，财务会计准那么第158条调整预计将有一个初步的申报，2006年实体估价意义重大。在附录中，我们提供的养老金过渡追溯调整是对美元的影响及其对本财年年底的财务报表五个大型股样本公司，如波音公司，雪佛龙公司，洛克希德公司06年12月31日生效的例如马丁公司，卡特彼勒公司和卡夫食品公司，在不同的产业经营。目前的研究重点是如何计算资本市场中潜在的对未来现金流量报告实体过渡养老金的调整造成净资产变化的经济因素

54、。我们正在积极地进行的前提是，它会为市场提供有益的关于信息处理方面调整的见解和过渡养老金保险业监理处组成局部，在财务会计准那么第158条通过一年后，尤其是当相关的会计信息是直接计入相关性研究财务报表中披露，而不仅仅是金融脚注时，这种调整使得相关的未来现金流量的结果更加精确，为投资者可见。我们研究资本市场是否过渡的养老金是根据美国证券交易委员会注册人在财务会计准那么第158条的有关报告，同时结合盈利和股本证券的定价通过后一年的调整。如果养老金过渡调整伴随着减少股东权益由资产负债下降为先前资金缺乏的方案增加的作用，我们预期财务会计准那么第158条交易效果会降低公司价值。但是，如果养老金方案是过度投资，过渡调整那么会产生相反的效果，这使增加股东权益伴随资产增加或负债减少。在这种分析中，我们还检查处部件的价值，在财务会计准那么第158条通过一年后的相关股票价格变化作为补充证据对他们的启示。试验结果说明，一般来讲，股市的负面反映过渡养老金的调整幅度。我们发现，无论在水平或股票收益的变化横断面差异显示负的养老金调整的过渡和措施，与保监处组成局部其他收入的