Читать книгу Auditing Employee Benefit Plans - Josie Hammond - Страница 79

In February 2017, FASB issued ASU 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.

This ASU includes the following changes reporting and disclosure requirements for plans with master trusts:

 All plans should present their interest in the master trust and change in interest in the master trust as single line items in the statement of net assets available for benefits and the statement of changes in net assets available for benefits.

 All plans should provide the dollar amount of the plan’s interest in each general type of investment held by the master trust, which would supplement the existing GAAP requirement for a plan to disclose the master trust’s balances in each of those investments, by general type.

 All plans should disclose the master trust’s other assets and liabilities, as well as the dollar amount of the plan’s interest in each of those assets and liabilities.

 The current GAAP requirement to disclose, for plans with a divided interest in a master trust, the plan’s overall percentage in the master trust, is removed in order to avoid requiring redundant information.

 A health and welfare plan is not required to provide investment disclosures for 401(h) account assets because those disclosures are required to be provided within the defined benefit pension plan financial statements. However, the EITF decided to require the disclosure of the defined pension plan name within the health and welfare benefit plan so that all users can access the investment disclosure information relating to the 401(h) accounts, if desired.

ASU No. 2017-06 is effective for the fiscal periods beginning after December 15, 2018. Early adoption is permitted. Upon adoption, the amendments shall be applied retrospectively to all periods presented.

Participants are encouraged to consult the full text of ASU No. 2017-06 on FASB’s website at www.fasb.org.