Torrillo & Associates

  • Contact Us
  • 484-574-8782
  • Home
  • About
    • specialists
    • our team
    • Careers
  • Audit Process
  • Services
    • CPA firm partnership
  • Clients
  • Videos
  • Blog
 March 22, 2023

Current Benefit Plan and Audit Related News and Updates

Monday, April, 27, 2015 / Published in Employee Benefit Plans, Forms and Procedures, News and Press Releases

FASB Proposes Updates Aimed at Simplifying Accounting for Employee Benefit Plans

FASBAs expected, the FASB proposed three Accounting Standards Updates (ASUs) aimed at simplifying accounting for employee benefit plans. According to the AICPA Journal of Accountancy, the updates were the result of consensuses of FASB’s Emerging Issues Task Force. The three proposed ASUs for plan accounting were included in one exposure draft: Proposed ASU, Plan Accounting: Defined Benefit Pension Plans (Topic 960), Defined Contribution Pension Plans (Topic 962), Health and Welfare Benefit Plans (Topic 965): I. Fully Benefit-Responsive Investment Contracts, II. Plan Investment Disclosures, and III. Measurement Date Practical Expedient.

Those proposals are part of FASB’s simplification initiative:

  • The first proposal would designate contract value as the only required measure for fully benefit-responsive investment contracts. It would apply to defined contribution pension plans and health and welfare benefit plans that classify investments and fully benefit-responsive investment contracts. A plan would continue to provide disclosures that help users understand the nature and risks of fully benefit-responsive investment contracts.
  • The second proposal would require that participant-directed and nonparticipant-directed investments of employee benefit plans be grouped only by general type, eliminating the need to disaggregate the investments in multiple ways. Additionally, the requirement to disclose investments that represent 5 percent or more of net assets available for benefits would be eliminated. For investments measured using the net asset value per share (or its equivalent) expedient in Topic 820, Fair Value Measurement, disclosure of that investment’s strategy would no longer be required if that investment is in a fund that files a U.S. Department of Labor Form 5500, Annual Return/Report of Employee Benefit Plan, as a direct filing entity. This proposal would apply to defined benefit pension plans, defined contribution pension plans, and health and welfare benefit plans.
  • The third proposal also would apply to those three types of plans, providing a practical expedient allowing employers to measure benefit plan assets on a month-end date nearest to the employer’s fiscal year end when the fiscal period does not coincide with a month end. Employee benefit plans were excluded from a standard FASB issued earlier this month allowing this practical expedient for other entities.

Comments are due May 18 on the proposals and can be submitted at FASB’s website.

Tagged under: 401(k), 403(b), Defined Benefit Plans, FASB, New Accounting Guidance, Pension Plans

What you can read next

IRS Terminating Proposed Penalty Notices for Untimely Filed or Incomplete Forms 5500
New Revenue Procedures for the Employee Plan Compliance Resolution System, including 403(b) Plan Failures
Plan Fiduciary Update: International Paper Settles Suit Over 401(k) Plan

Recent Posts

  • DOL ISSUES CHANGES TO 2023 FORM 5500

    The U.S. Department of Labor (DOL), the Interna...
  • SECURE 2.0 Act of 2022

    SECURE 2.0 Act of 2022 was passed by Congress a...
  • DOL Proposed Changes to VFCP, including Adding Self-Correction for Late Contributions

    The U.S. Department of Labor announced that its...

Categories

  • Employee Benefit Plans
  • Forms and Procedures
  • News and Press Releases
  • Policy Updates
  • Retirement – 401(k), 403(b)
  • Uncategorized

Torrillo & Associates, LLC specializes in employee benefit plan audits, 401k audits, 403b audits, pension plan audits, and retirement plan audits. We are licensed in 7 states including New York, New Jersey, and Pennsylvania.  With firm mobility, we are also able to practice in an additional 27 states.

36 Regency Plaza
Glen Mills, PA 19342

view on map »

Careers
Phone: 484-574-8782
Fax: 484-574-8785

  • GET SOCIAL
Torrillo & Associates

Copyright © 2010 to 2023 Torrillo & Associates, LLC. All rights reserved. v07.03.22.WPE| Privacy Policy | Terms of Use

TOP
X
Worried about your yearly Benefit Plan Audit? Call us now for a free consultation!
Call Us
This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Cookie settingsACCEPT
Privacy & Cookies Policy

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Non-necessary
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.
SAVE & ACCEPT