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FASB Proposes Two Accounting Standard Updates

FASB Issues Proposed Improvements To Financial Reporting of Pension and Other Post-Retirement Benefit Plans

fasb-logo-main_smThe Financial Accounting Standards Board (FASB) has issued two proposed Accounting Standards Updates (ASUs) intended to improve financial reporting by employers related to defined benefit pension and other postretirement benefit plans. They are:

  • The proposed ASU, Compensation—Retirement Benefits—Defined Benefit Plans—General (Subtopic 715-20): Changes to the Disclosure Requirements for Defined Benefit Plans, is part of the FASB’s broader disclosure framework project aimed at improving the effectiveness of disclosures in the notes to financial statements by focusing on the information that is most relevant to financial statement users.
  • The proposed ASU, Compensation—Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost, seeks to improve guidance related to the presentation of defined benefit costs in the income statement.

To learn more about the proposed ASUs, [click here]. Stakeholders are asked to provide any comment(s) they should have on the proposed ASUs by April 25, 2016.

To discuss the impact of these ASU’s on your benefit plan, call Linda Pearson at 401-752-0566.