Executive Summary:
The Financial Accounting Standards Board (FASB) has issued two Exposure Drafts that would affect companies that participate in multiemployer defined benefit plans. The first is Disclosure of Certain Loss Contingencies (Topic 450) issued on July 20, 2010, and the second is Compensation - Retirement Benefits - Multiemployer Plans (Subtopic 715-80) issued on September 1, 2010.
These proposed accounting standards would significantly expand the information that companies that sponsor multiemployer defined benefit pension plans must disclose in their financial statements. Among the various proposed requirements, the new rules would mean that all companies must report their potential withdrawal liability assessments annually.
FASB has invited all interested parties to comment on the Loss Contingencies Exposure Draft by September 20, 2010, and on the Multiemployer Plans Exposure Draft by November 1, 2010. We urge all interested parties to submit comments on either or both of these proposals, as the best way to get the attention of FASB is for them to receive as many thoughtful comments as possible, from as many different organizations as possible.
Click here to read the NCCMP
Issues Paper discussing these two accounting standards.
Multi-Elert® Volume X · Issue 2
