New FASB Standard Impacts Master Trust Investments
Updates have been issued regarding the Financial Accounting Standards Board’s (“FASB”) master trust investments guidance. The amendments in Accounting Standards Update No. 2017-06, Plan Accounting: Defined Benefit Pension Plans (Topic 960); Defined Contribution Pension Plans (Topic 962); Health and Welfare Benefit Plans (Topic 965): Employee Benefit Plan Master Trust Reporting, primarily deal with an employee benefit plan reporting its interest in a master trust. The amendments address diversity in practice regarding the presentation of master trust investments in the statement of net assets available for benefits. For every master trust wherein an employee benefit plan holds an interest, the interest. Read More.
Topics: Accounting Standards Update "ASU", Defined Benefit Pension Plans (Topic 960), Defined Contribution Pension Plans (Topic 962), Diversity in Practice, Employee Benefit Plans, FASB, Financial Accounting Standards Board "FASB", Health and Welfare Benefit Plans (Topic 965), Master Trust Investments
AICPA Auditing Standards Board to Meet in Florida
Starting Monday, the American Institute of Certified Public Accountants’ (“AICPA”) Auditing Standards Board will hold a four-day meeting in Fort Lauderdale, Florida. Cherry Bekaert’s Melisa Galasso will attend a portion of the meeting as a member of the AICPA’s Technical Issues Committee. According to the meeting agenda , the Auditing Standards Board is expected to vote on proposed AU-C section 570, The Auditor’s Consideration of an Entity’s Ability to Continue as a Going Concern. In addition, the board is expected to approve an exposure draft of proposed Statements on Auditing Standards No. 13x, Forming an Opinion and Reporting on Financial Statements of Employee Benefit Plans. Read More.
Topics: AICPA Auditing Standards Board, American Institute of Certified Public Accountants "AICPA", Employee Benefit Plans, Going Concern, International Auditing and Assurance Standards Board "IAASB", Proposed Statement on Auditing Standards
Summary of FASB’s November 30 Meeting
In addition to approving a simplified goodwill impairment test , the Financial Accounting Standards Board (“FASB”) discussed the following topics at its November 30 meeting: Nonemployee share-based payment accounting. The FASB reached decisions based on feedback from external reviewers, and instructed staff members to develop a proposed Accounting Standards Update (“ASU”) with a 90-day comment period. Conceptual framework—measurement. The FASB reached decisions on guidance for the initial carrying amount of an asset, and instructed staff members to create an updated project plan regarding the elements of financial statements alongside the presentation and measurement concepts. Issue No. 16-B, “Employee Benefit Plan Master Trust Reporting.” The FASB ratified. Read More.
Consensus on Employee Benefit Plan Master Trust Reporting Reached
Ahead of its November 30 meeting, the Financial Accounting Standards Board (“FASB”) reached a final consensus regarding 16-B, “Employee Benefit Plan Master Trust Reporting.” The FASB could ratify the final consensus at next week’s meeting, which means it will become authoritative upon its inclusion to the FASB Codification.
FASB Proposes Changes to Employee Benefit Plan Reporting
The Financial Accounting Standards board (“FASB”) has proposed amendments that would impact how entities disclose employee benefit plan master trusts. Issued as proposed Accounting Standards Update (“ASU”), Plan Accounting: Defined Benefit Pension Plans (Topic 960), Defined Contribution Pension Plans (Topic 962), Health and Welfare Benefit Plans (Topic 965): Employee Benefit Plan Master Trust Reporting, the proposal would help clarify the presentation of a plan’s interest in a master trust while also requiring additional disclosures of the plan’s interest. The proposal would also eliminate redundancy of the Sec. 401(h) disclosure requirements. Comments on the proposed ASU are due Monday, September 26.. Read More.
AICPA Releases Additional Technical Q&As for Guidance on ASU No. 2013-07
To be used as implementation guidance for accounting, auditing and applicable industry matters, the American Institute of Certified Public Accountants (“AICPA”) has released new technical staff practice aids under (a) TIS Section 6931, Financial Statement Reporting and Disclosure—Employee Benefit Plans and (b) TIS Section 8900, Predecessor Auditors. Published in a questions and answers format, TIS Sections 6931.18 through 6931.30 help practitioners understand the accounting impact of Financial Accounting Standards Board’s Accounting Standards Update No. 2013-07, Presentation of Financial Statements—Liquidation Basis of Accounting, on single-employer pension plans. Some of the sections cover topics like Definition of “Imminent” Under Liquidation Basis of Accounting for Single-Employer Defined Benefit and. Read More.