FedEx and Pension Accounting

By Elizabeth Blankespoor, Jaclyn Foroughi
2015 | Case No. A222 | Length 30 pgs.

Susan Barney, chief financial officer of Parcel Expeditors (Parcel), a thriving same-day package delivery company headquartered in the United States, had to make some decisions. The management of Parcel was planning to take the company public in the coming year but they had yet to determine the accounting for certain pension plan costs. The most important goal for management was to provide investors with useful information for their decision making; however, Barney was unsure as to how different choices allowed within the pension accounting standard might impact earnings.

In order to assess the impact of each standard, Barney decided to evaluate the pension accounting of a few competitors in the package delivery industry.

Learning Objective

Introduce students to current pension accounting standards under U.S. GAAP and IFRS. Provide students with an opportunity to analyze the financial reporting implications of pension accounting decisions and standards.
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