News Archive

"This update would amend Topic 715 of the FASB Accounting Standards Codification, which governs the measurement of pension liabilities for a plan sponsor's financial statements.... The proposed update would result in liability measurements that more closely track the account balances, consistent with the plan sponsor's true financial obligation."  MORE >>

"The current accounting rule may make sense for a traditional cash balance plan, in which the interest crediting rate is generally unrelated to the plan's discount rate, by allowing recognition of the economic effect that difference. But MRCB plans function much more like defined contribution plans, where returns on plan accounts equal returns on plan assets. In that context, as FASB says, the current accounting rule 'may not reflect the economics of those plans.' "  MORE >>

"MBCBPs are accounted for as DB plans under U.S. GAAP, but stakeholders have raised concerns that there are different interpretations of how ASC guidance applies to MBCBPs, resulting in accounting liabilities not always reflecting the economics of MBCBPs.... By enhancing clarity, consistency, and alignment with the underlying economics of these plans, the new FASB guidance may make MBCBPs a more attractive and feasible option for a wider array of employers."  MORE >>

"Because DB programs persist, accountants' ability to estimate the resulting liabilities is crucial. It is important to understand the computations and assumptions needed for DB plan rates of return, discount rates, inflation, and life expectancy variables.... As a result of the future risks presented by DB plans, accounting and finance professionals can do several things regarding pensions and their related liabilities."  MORE >>

"A February 17, 2026, memo to the [FASB] from the Private Company Council (PCC) ... raises the issue of whether the FASB should reconsider its current rules for accounting for ESOP repurchase obligations in private companies. Drawing on NCEO research, the memo says that private company ESOPs have grown significantly since the FASB last looked at this issue in 1993."  MORE >>

"[FASB] will measure the benefit obligation for in-scope plans under the existing defined benefit accounting model by setting the discount rate equal to the assumed interest crediting rate. FASB also decided to clarify that an entity would be required to use the assumed interest crediting rate as the discount rate in all circumstances for in-scope plans.... FASB has decided to [1] direct the staff to draft a proposed accounting standards update for vote by written ballot and [2] grant a 60-day comment period concerning the proposed update."  MORE >>

"The plans impacted by this change are ... DB pension plans where participant benefits are communicated as an account balance, which include pay credits and interest credits based on one of the following investable market returns: [1] The return on plans' assets; [2] The return on a subset of the plans' assets that approximates the associated cash balance liabilities; [3] The return on a regulated investment company."  MORE >>

"Earlier this year, the Governmental Accounting Standards Board (GASB) completed an extensive post-implementation review (PIR) of the pension standards issued in 2012, Statement No. 67, Financial Reporting for Pension Plans, and Statement No. 68, Accounting and Financial Reporting for Pensions. NCPERS spoke with the GASB team about the review and the report issued at its conclusion earlier this year."  MORE >>

53 pages. "Overall, Statements 67 and 68 resolved the primary issues underlying the stated need for the standards ... Consistent with the comprehensive nature of the Statements, implementation costs were significant ... Overall, the expected benefits of Statements 67 and 68 -- improved user understanding about pension plans and pensions, including governments' net pension liabilities and contributions to pension plans, better decision making and assessment of accountability and interperiod equity, greater comparability and consistency, and increased transparency -- have been achieved."

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28 pages. "The FASB is issuing the amendments in this Update to improve generally accepted accounting principles (GAAP) by adding an illustrative example to demonstrate how an entity should apply the scope guidance in paragraph 718-10-15-3 to determine whether profits interest and similar awards should be accounted for in accordance with Topic 718, Compensation -- Stock Compensation."  MORE >>

"[Q]ualified DB pension plans and other non-pension DB benefit plans would be treated for purposes of the alternative minimum tax the same way they are treated for regular federal income tax purposes ... [P]ublicly traded corporations that repurchase more than $1 million in stock will be subject to an excise tax of 1% of the stock's fair market value.... The excise tax will not apply in cases where the repurchased stock (or an amount equal to its value) is contributed to an employer-sponsored retirement plan, employee stock ownership plan or similar plan.... HSA-qualifying HDHPs will be permitted to cover insulin before the annual deductible is satisfied."  MORE >>

"[GASB] issued Statement No. 101, Compensated Absences, to align the recognition and measurement guidance for compensated absences and refine the related disclosure requirements.... The updated guidance is effective for fiscal years beginning after December 15, 2023, and all reporting periods thereafter."  MORE >>

"[SEC staff] released guidance for companies about how to properly recognize and disclose compensation cost for 'spring-loaded awards' made to executives. Spring-loaded awards are share-based compensation arrangements where a company grants stock options or other awards shortly before it announces market-moving information such as an earnings release with better-than-expected results or the disclosure of a significant transaction. According to Staff Accounting Bulletin (SAB) No. 120 ... non-routine spring-loaded grants merit particular scrutiny by those responsible for compensation and financial reporting governance at public companies."  MORE >>

31 pages. "[These] frequently asked question (FAQ) and illustrative auditor's reports have been developed to aid practitioners as they apply AICPA Statement on Auditing Standards (SAS) No. 136, Forming an Opinion and Reporting on Financial Statements of Employee Benefit Plans Subject to ERISA ... in their audits of financial statements of employee benefit plans subject to [ERISA] in the initial year of implementation."  MORE >>

"Organizations considering a conversion to the International Financial Reporting Standards (IFRS) from U.S. Generally Accepted Accounting Policies (U.S. GAAP) should note that there are differences surrounding employee benefit plans. This could result in a significant impact to the financial statements, particularly for organizations with large defined benefit plans."

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"The new standard intends to reduce the financial-reporting complexities and ease the overall implementation costs of GASB 84, Fiduciary Activities -- specifically when evaluating defined contribution pension and defined contribution post-employment benefit plans ... Implementation of GASB 97 is expected to minimize the number of DC plans that meet the criteria for reporting as a fiduciary component unit within a sponsoring government's annual financial report."  MORE >>

"Prior standards presumed that all Section 457 plans were not pension plans and, therefore, were not subject to pension plan reporting requirements; similarly, benefits provided through Section 457 plans were not reported as pension benefits. Under Statement 97, however, Section 457 plans should be classified as either a pension plan or other employee benefit plan, depending on whether the plan meets the definition of a pension plan. It also clarifies that Statement 84, as amended, should be applied to all arrangements organized under IRC Section 457 to determine whether those arrangements should be reported as fiduciary activities."  MORE >>

"The American Institute of Certified Public Accountants (AICPA) has issued Statement of Auditing Standards (SAS) Number 141, which provides for a delay in effective dates for ... SAS 136, Forming an Opinion and Reporting on Financial Statements of Employee Benefit Plans Subject to ERISA ... to December 15, 2021. Additionally, it amends SAS 136 to no longer preclude early implementation."

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"The [March 5] exposure draft is intended to improve the consistency of the reporting of fiduciary component units and enhance the comparability in the application of accounting and financial reporting requirements for deferred compensation plans. The amended guidance applies to all governmental organizations subject to generally accepted accounting principles (GAAP) for state and local governments. Comments are due by April 10, 2020."  MORE >>

"If rates do not rebound before the end of the fiscal year, the rate decrease could increase governments' OPEB liabilities substantially when they prepare their June 30, 2020 financial statements. The increase could be by as much as 30% or more for less mature governments who provide Medicare supplemental benefits. The increases will be smaller for fixed dollar benefit plans or for plans with no benefit after Medicare eligibility."

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38 pages. "This proposed Statement would require that for purposes of determining whether a primary government is financially accountable for a potential component unit, except for a potential component unit that is a defined contribution pension plan, a defined contribution OPEB plan, or an other employee benefit plan (for example, a Section 457 plan to which only employees contribute), the absence of a governing board should be treated the same as the appointment of a voting majority of a governing board if the primary government performs the duties that a governing board typically performs.... In addition, this proposed Statement would require that all accounting and financial reporting requirements relevant to pension plans be applied to Section 457 plans that meet the definition of a pension plan. Similarly, this proposed Statement would specify that all accounting and financial reporting requirements relevant to pensions be applied to benefits provided through Section 457 plans that meet the definition of a pension plan."  MORE >>

"On February 5, 2020, [GASB] issued Statement No. 92, Omnibus 2020 ...  Statement No. 84, 'Fiduciary Activities,' requires a government to recognize a liability to the beneficiaries of a fiduciary activity when an event has occurred that compels the government to disburse fiduciary resources. The amendments clarify that this requirement also applies to assets that are accumulated for purposes of providing pensions or OPEB through defined benefit pension plans or defined benefit OPEB plans that aren't administered through trusts that meet the scope criteria of [GASB] Statement No. 73 ... and Statement No. 74 ... This amendment is effective for reporting periods beginning after June 15, 2020."  MORE >>

"This report examines how cash and accrual measures differ for federal retirement and veterans’ benefits and highlights trade-offs between the types of information that those measures provide to policymakers. The report also discusses some ways to expand the use of accrual measures for such benefits."  MORE >>

"If your organization opts for what is currently called an ERISA limited scope audit ... you will be required to provide certain written representations related to the reliability of the certified investment information.... Plan sponsors must be able to produce a completed (or substantially complete draft) Form 5500 in order for their auditor to identify material inconsistencies and material misstatements of fact, if any, with the audited ERISA plan financial statements prior to dating the auditor's report.... Areas of plan reporting that tend to have a high rate of compliance issues, such as prohibited transactions, will be getting a closer review from your plan auditor."  MORE >>

"SAS 136 is effective for audits of ERISA plan financial statements for periods ending on or after December 15, 2020 ... The standard addresses requirements specific to: Engagement acceptance ... Audit risk assessment ... Communication of reportable findings ... The form and content of the auditor's report for ERISA plans have changed[.]"  MORE >>