Accounting for Pensions Form groups of two or more students. Divide each group into two debate teams. Each team should be assigned one of the two following positions: 1. Pensions and other postretirement benefits are legitimate liabilities of a company and should be recognized as such on their balance sheets. They are expenses of the periods in which the benefit- ing employees work, so the obligation to pay them should be accrued at that time. 2. Pensions and other postretirement benefits are not legal liabilities of a company and should not be included among their liabilities on the balance sheet. They are essentially expenses in the period when the benefits are paid. One team defending each proposition can be given 5 to 10 minutes to present its case, followed by approximately 2 minutes each for rebuttals. Then a general class discussion of the issues can follow. The class might take a vote on which group made the most convincing argument. Analyzing and Interpreting Financial Statements