Because of the stock market drop many corporations are going to have to ante up a bunch of cash into their pension funds to cover stock losses, which is likely to affect their own stock price. Which will, of course, affect any pension funds that are invested in those companies, which could mean … Get it? ANOTHER accounting problem that might be big news in a few days.
Read about it here. “Topping off an underfunded pension plan hurts company profits because it soaks up cash flow that could otherwise be used to pay debt or buy new equipment. But some companies got even more mileage out of their plans’ investing success: In the late 1990s, pension-fund holdings grew so lush that companies could properly account for excess fund profits as part of their earnings.