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Because of the dramatic increase in health care costs and the fact that more people are retiring earlier and living longer, the issue of post retirement benefit costs other than pensions has become a topic of great interest to issuers and users of financial statements.The Financial Accounting Standards Board is in the process of requiring corporations to report these expected future post retirement costs as liabilities. This paper examines the proposed treatment of post retirement benefits costs and discusses alternative strategies a company may adopt to prepare for implementation of the standard.