FASB to defer effective date for certain nonpublic employee benefit plan investment disclosures

The Board has issued a proposal to indefinitely defer the effective date for disclosing unobservable inputs in Level 3 fair value measurements of investments held by a nonpublic employee benefit plan in its private company plan sponsor. The proposed Accounting Standards Update, Deferral of the Effective Date of Certain Disclosures for Nonpublic Employee Benefit Plans in Update No. 2011-04, would address private companies' concerns that the required disclosures could potentially expose proprietary information about their securities since the financial statements filed by participating nonpublic employee benefit plans can be publicly accessed on the U.S. Department of Labor's website. The ASU would not defer the required quantitative disclosure for other equity securities held by the non-public employee benefit plan. The deferral would take effect when the final ASU is issued, which is expected in June 2013. Comments on the proposal are due by May 31, 2013.

EITF releases agenda and materials for June 11 meeting

The EITF recently released its proposed agenda for the June 11 meeting, which will include the following topics:

  • Issue 12-G, "Accounting for the Difference between the Fair Value of the Assets and the Fair Value of the Liabilities of a Consolidated Collateralized Financing Entity"
  • Issue 12-H, "Accounting for Service Concession Arrangements"
  • Issue 13-A, "Inclusion of the Fed Funds Effective Swap Rate (or Overnight Index Swap Rate) as a Benchmark Interest Rate for Hedge Accounting Purposes"
  • Issue 13-C, "Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward or Tax Credit Carryforward Exists"
  • Issue 13-D, "Determination of Whether a Performance Condition That Is Allowed to Be Met after the Requisite Service Has Been Provided by the Employee Is a Vesting Condition or a Nonvesting Condition"
  • Issue 13-E, "Reclassification of Collateralized Mortgage Loans upon a Troubled Debt Restructuring and Accounting for the Effect of a Federal Housing Administration Guarantee"

Discussion materials will be posted as they become available prior to the meeting.

AICPA publishes alert on not-for-profit industry

The AICPA recently released an Audit Risk Alert titled Not-for-Profit Entities Industry Developments, which features current developments and auditorconsiderations of those developments. Included in the currentdevelopments are discussions around not-for-profit (NFP) trends, goingconcern, related party, and fair value matters, consolidation issues, andrecent and planned IRS activity.

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