Participation choice: The exposure draft for postretirement

A study investigates constituent participation in the standard setting process for the exposure draft related to SFAS 106, Employer's Accounting for Postretirement Benefits Other Than Pensions. A survey of both participants and nonparticipants in the standard setting process was conducted to determine the motivation behind the participation choice. Logistic regression analysis was used to identify statistically significant variables in the participation choice decision. Three variables in the participation choice model were supported in the logistic regression analyses - firm size (as measured by net sales), impact of the proposed standard on financial statements (as measured by the number of retirees), and position choice on the proposed standard. The other attribute tested, leverage position, was not found to be statistically significant. The study will better inform readers about how constituents perceive the FASB's due process and their influence on the standard setting process.