Читать книгу Annual Accounting and Auditing Workshop - Kurt Oestriecher - Страница 70

This update was issued to improve the usefulness of the information reported to users of employee benefit plan financial statements and to provide clarity to preparers and auditors. It relates primarily to the reporting by an employee benefit plan for its interest in a master trust. A master trust is a trust for which a regulated institution serves as a trustee or custodian and in which assets of more than one plan sponsored by a single employer or a by a group of employers under common control are held.

Many stakeholders found the master trust disclosure requirements in GAAP to be limited and incomplete, particularly relating to disclosures of the plan’s interest in the master trust. Most preparers relied on the AICPA Audit and Accounting Guide Employee Benefit Plans for guidance. The amendments in this update require more detailed disclosures of the plan’s interest in the master trust.

In addition, stakeholders noted that disclosures for both the defined benefit pension plan financial statement and the health and welfare benefit plan financial statements were redundant. This update removed that redundancy.