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FASB Redeliberates Proposed Changes to Multiemployer Plan Disclosures
By: Mark Prouhet
Mark Prouhet
Manager
Construction & Real Estate, Manufacturing & Distribution
St. Louis
314.231.5544
Respondents can breathe a small sigh of relief—at least for now. The Financial Accounting Standards Board (FASB) met May 31, 2011, to again deliberate proposed changes to multiemployer plan disclosures presented in an exposure draft issued in September 2010. The board reached several tentative decisions, most of which attempt to address concerns expressed in more than 300 comment letters.
Tentative Decisions
The board reached the following tentative decisions:
- An employer will not be required to disclose its estimated withdrawal liability. However, employers would still be required to include certain qualitative disclosures for multiemployer plans for which contributions are individually material in relation to employer participation.
- An employer would be required to disclose contributions to each individually material plan, along with contributions to all other plans in the aggregate.
- The following disclosure requirements from the original exposure draft have been removed:
- Number of multiemployer plans in which an employer participates
- Total assets and accumulated benefit obligation of multiemployer plans
- Plan contributions as a percentage of total contributions
- The percentage of employees covered by multiemployer plans
- Certain supplemental information about plans in which information about withdrawal liability is not available
While many consider these decisions a step in the right direction, these are tentative and subject to change.
A copy of the meeting minutes is available on the FASB website.
Next Steps
The board asked FASB staff to reach out to respondents and users to discuss these tentative decisions and address certain questions and concerns from the board meeting. Staff anticipate this process lasting through the end of June, with results to be discussed at a future board meeting.
The board anticipates issuing a final Accounting Standards Update in the second half of 2011.
Contact your BKD advisor to further discuss the proposed changes and their potential impact.
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