An accounting rule established in 1990 that requires companies to change their accounting for the cost of their retirees’ future nonpension benefits (life insurance and health services). What were once “pay as you go” or “cash basis” expense items were changed to an accrual basis. Such costs are now recognized during the employees’ working years.

When the steel companies shifted to the new accounting rule, most companies charged the “catch-up” to equity in large one-time write-downs as they established the new liabilities on their balance sheets.