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LUX » Topics » Accounting and Disclosure Requirements Related to the Medicare Prescription Drug, Improvement and Modernization Act of 2003This excerpt taken from the LUX 20-F filed Jun 29, 2005. Accounting and Disclosure
Requirements Related to the Medicare Prescription Drug, Improvement and
Modernization Act of 2003 (“FSP FAS 106-2”), which
supersedes FSP FAS 106-1. Under the Act of 2003, if a sponsor of
retiree healthcare plans offers drug benefits that are at least actuarially
equivalent to those to be offered under Medicare Part D, it can be
entitled to a federal subsidy equal to 28 percent of the prescription drug
claims under the plan. FSP FAS 106-2 requires plan sponsors to
disclose the effect of the subsidy on the net periodic expense and accumulated
post retirement benefit obligation in their interim and annual financial
statements for periods beginning after June 15, 2004. The effect of this
Act on the Company’s current plans was immaterial and thus not disclosed separately
due to the small number of eligible plan participants.
In November 2004, the FASB issued SFAS No. 151, |
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