Impact of the Actuarial Profession on Financial Reporting.

Recent developments in financial reporting have highlighted the role of the actuarial profession. This paper discusses those actuarial services that have an impact upon the financial reports prepared or audited by members of the accountancy profession. The evolution of actuarial influence on financial reporting is traced through the passage of the Employee Retirement Income Security Act and the subsequent promulgation of pension and other postretirement benefit reporting standards. A summary of the actuarial functions and their effect on financial reporting is presented. The potential for future interaction between the actuarial profession and the accounting profession with regard to financial reporting is briefly discussed.