Are the partner pension obligations at most public accounting firms held off-balance sheet?

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Not sure what this means but pensions “here” are paid out of future earnings not to exceed a ceiling %. I assume this is a random thought cos I can’t imagine why this is important to you.

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Got it. It’s not a standard obligation that would be due on liquidation, etc., so agree that this is not a bal sheet item for the firm.

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Pension obligations appear on the balance sheet like any pension plan, and the assets / liabilities explained in the footnotes. Underfunded / unfunded non-pension retiree obligations (think medical or other retiree incentives) don’t always have to be reported and may simply be referenced deep in a footnote.

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Per pensions accounting 101 there has to be an accrual on the balance sheet for Defined Benefit plans (pensions and OPEB) accounted for in US GAAP or IFRS.

Local GAAP in certain countries allows for OBS treatment of DB plans.

DC retirement plans have no liability on the BS.

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As a privately held organization there is no requirement to comply with GAAP or IFRS.

As the unfunded pension obligations are not required to be paid, they are subject to a board vote each year, there is no requirement to record them as a financial obligation. The funded portions are funded, there is no need to show them on the balance sheet.

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