AT&T has decided it’s better to account for pensions and other retirement benefit offerings under fair value than to smooth over gains and losses as allowed under current accounting rules.
AT&T said it will take a $2.7 billion non-cash charge to earnings in the fourth quarter of 2010 and will flush through the balance sheet some $17 billion in pent-up pension-related losses dating back to early 2008 as a result of the change. AT&T filed a Form 8-K with the Securities and Exchange Commission to explain the change in accounting method.
