FASB Approves Deferral on Certain Benefit Plan Disclosures

By Jason Bramwell
 
The Financial Accounting Standards Board (FASB) voted on June 12 to indefinitely defer certain disclosures about investments held by a nonpublic employee benefit plan in its plan sponsor's own nonpublic equity securities.
 
The issue focuses on certain disclosure requirements in paragraph 820-10-50-2 of the FASB Accounting Standards Codification that bothered private company stakeholders.
 
"Today's decision is responsive to private company stakeholders, addressing their concern that certain disclosure requirements would potentially provide proprietary information when their employee benefit plans' financial statements are posted on the plan regulator's website," FASB Chairman Leslie Seidman said in a written statement.
 
Because the Department of Labor makes all financial statements for employee benefit plans public on its website, anyone with an Internet connection could access this proprietary information, according to the FASB.
 
The indefinite deferral applies to disclosures of certain quantitative information about significant unobservable inputs used in Level 3 fair value measurement for investments held by certain employee benefit plans, the FASB stated. 
 
The deferral applies specifically to employee benefit plans – other than those plans that are subject to US Securities and Exchange Commission filing requirements – that hold investments in their plan sponsors' own nonpublic entity equity securities, including equity securities of their nonpublic-affiliated entities.
 
 
The deferral will become effective upon issuance of the final update for all financial statements that have not yet been issued, which is expected in the next few weeks.
 
Related articles:
 

You may like these other stories...

Read more from Larry Perry here and in the Today's World of Audits archive.AU-C Section 800, Special Considerations—Audits of Financial Statements Prepared in Accordance With Special Purpose Frameworks, paragraph ....
FASB mulling a revamped income statementDavid M. Katz of CFO wrote on Tuesday that the Financial Accounting Standards Board (FASB) is in the early stages of researching whether to launch a project aimed at improving and...
Accountants who specialize in forensic and valuation services point to electronic data analysis, or big data, as the most pressing issue they’ll face in the coming months, according to results of a new survey released...

Upcoming CPE Webinars

Jul 31
In this session Excel expert David Ringstrom helps beginners get up to speed in Microsoft Excel. However, even experienced Excel users will learn some new tricks, particularly when David discusses under-utilized aspects of Excel.
Aug 5
This webcast will focus on accounting and disclosure policies for various types of consolidations and business combinations.