The FASB affected changes to the accounting of defined benefit pension plans, but SFAS 86 has not resolved the issue of the valuation of excess pension assets as a corporate asset. When accumulated benefits obligations exceeded the value of the plan assets, the FASB required employers to recognize a liability but did not require the recognition of an asset where pension fund assets exceed promised benefits. The Employee Retirement Income Security Act requires that pension assets be managed for the benefit of plan participants, and shareholders should not regard corporate access to pension assets as definite. Although the issue of pension liability recognition has been widely discussed, recognition of a net pension surplus as a corporate asset has not been considered in depth. Many Plans Are Overfunded Recognition of a net pension asset deserves serious consideration as an increasing number of corporations find themselves with overfunded plans.
Pension funds can also be very large relative to total corporate assets.
Although information on the fair market value of pension plan assets can be found in footnote disclosures, disclosure cannot be considered a substitute for recognition if pension assets meet recognition requirements. While some research indicates footnote disclosures are incorporated into the market's determination of stock prices, other studies have suggested individuals do not treat footnote disclosures in the same way as balance sheet items. 87 Under SFAS 87, an employer must recognize a liability in the statement of financial position that is at least equal to the unfunded benefit obligation, although that liability can be offset by an intangible asset under some circumstances. However, an employer with an overfunded plan does not recognize an asset. In its discussion of SFAS 87, FASB stated that pension plan assets should be attributed to the employer because the employer bears the risk and rewards associated with plan performance.