### Comment:
Which makes sense since pensions are estimated (therefore, accounting practices get a little wishy-washy); however, it blows my mind that the auditors that do their FS didn’t at least assess the liability and disclose the exposure. 
  
 Yea, they sold them in the 80s but regulation changes in 2002 should have made the auditor say “let’s actually check on this...”

### REPLY:
These are insurance contracts, not pensions.  They are accounted for in a very specific manner.  Debit to cash, credit to ~~prepaid insurance~~ ***Unearned Premium***.  You take profit and loss as the policies start paying out or lapsing. 
  
 *Edit: Fucked up the credit.*

### END.