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Prepared for TIC by Mike Ewing, J.D.
Director of Research
United Actuarial Services, Inc.
(317) 580-8659
Fax (317) 580-8651
email: mewing@unitedactuarial.com
© United Actuarial Services, Inc. 2010
2010-25
March 26, 2010
FASB Announces Project to Expand Disclosures of
Employer Participation in Multiemployer Plans
At the March 17, 2010 meeting of the U.S. Financial Accounting Standards Board
(FASB), the FASB chairman announced the addition of a new project aimed at
expanding disclosures about an employer’s participation in a multiemployer plan
(that is, pension and other postretirement benefits). The FASB staff indicated they
expect the Board to deliberate on the matter in April and propose a project
timetable that could
make the new disclosures effective for year end 2010
reporting.
Since 1973, FASB has been the designated organization in the private sector for
establishing standards of financial accounting. For prior multiemployer FASB news,
Concerns raised to FASB that spurred the addition of the project included the lack
of information in the financial statements
(beyond the amount of contributions
made) about an employer’s participation in a multiemployer plan and the potential
for increases in contributions as a result of plans being underfunded
due to the
funding
status of many of multiemployer pension
plans deteriorating
significantly
during the financial crisis of 2008. FASB envisions
expanded disclosures would
enable users of financial statements to better assess the risks a reporting entity
faces by participating in a multiemployer plan.
Technically speaking, the project aims to enhance the disclosure requirements of an
employer’s participation in a multiemployer plan under FASB Accounting Standards
Codification™ Subtopic 715-80 (originally issued as FASB Statements No. 87,
Employer’s Accounting for Pensions, No.
106, Employers’ Accounting for
Postretirement Benefits Other Than Pensions, and No. 132 (revised 2003),
Employers’ Disclosures about Pensions and Other Postretirement Benefits.
The announcement can be viewed by “clicking here.”
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CLIENT BULLETIN