Wednesday, July 27, 2011

FASB Approves New Standard On Multiemployer Pension Plans

At its board meeting earlier today, the Financial Accounting Standards Board approved issuing a new standard on Employer Disclosures For Multiemployer Pension Plans.

According to FASB's press release, the new standard is expected to be published in September, 2011, and will have the following effective date:


  • For public entities, the enhanced disclosures will be required in fiscal years ending after Dec.15, 2011.

  • For nonpublic entities, the enhanced disclosures will be required in fiscal years ending after Dec. 15, 2012.”

Describing the new standard, FASB Chairman Leslie Seidman stated,


“Historically, very limited information about these plans has been disclosed, even though they may represent significant potential obligations for many large, unionized industries such as trucking, supermarket chains, and construction firms. The enhanced disclosures will ensure that shareholders in companies that participate in these plans, workers who depend on them for their retirement benefits, as well as lenders and others, will have more information regarding the employers’ pension commitments and the financial health of the plans.”

Change made to proposal in response to constituent comments
As noted in FASB's press release:


Prior to today’s action by the FASB, employers were required to disclose only their total contributions to all multiemployer plans in which they participate. Today’s decisions conclude comprehensive deliberations about the disclosures an employer should provide. The FASB issued initial proposals for revising disclosures for public comment in September 2010. As part of its redeliberations, the FASB decided to delete a proposal to require employers to disclose their withdrawal liability to all plans in which they participate, or provide a “point-in-time” estimate of its obligations with respect to the underfunded status of individual plans.

Further highlights of the new requirements can be found in FASB's press release. See also FASB's project page.

Print this post

4 comments:

site said...

Really useful data, much thanks for your article.

Unknown said...
This comment has been removed by the author.
Unknown said...

"Just desire to say your article is as astounding. The clearness in your post is simply great and i can assume you're an expert on this subject. Fine with your permission allow me to grab your RSS feed to keep up to date with forthcoming post. Thanks a million and please continue the rewarding work."
best mattress reviews

Caloundra Bookkeeping said...

A good news because fasb approves multiemployer pension plans.