NEWS RELEASE 06/12/13
FASB INDEFINITELY DEFERS CERTAIN DISCLOSURES FOR NONPUBLIC EMPLOYEE BENEFIT
PLANS
Norwalk, CT, June 12, 2013—The Financial
Accounting Standards Board (FASB) today voted to indefinitely defer certain
disclosures about investments held by a nonpublic employee benefit plan in its
plan sponsor´s own nonpublic equity securities. The FASB will issue an
Accounting Standards Update, Fair Value Measurement (Topic 820): Deferral of
the Effective Date of Certain Disclosures for Nonpublic Employee Benefit
Plans in Update No. 2011-04, in the next few weeks.
The indefinite
deferral applies to disclosures of certain quantitative information about the
significant unobservable inputs used in Level 3 fair value measurement for
investments held by certain employee benefit plans. The deferral applies
specifically to employee benefit plans—other than those plans that are subject
to Securities and Exchange Commission filing requirements—that hold investments
in their plan sponsors´ own nonpublic entity equity securities, including equity
securities of their nonpublic affiliated entities.
A summary of
decisions reached will be available on the project
page of the FASB´s website at http://www.fasb.org/.
"Today´s decision
is responsive to private company stakeholders, addressing their concern that
certain disclosure requirements would potentially provide proprietary
information when their employee benefit plans´ financial statements are posted
on the plan regulator´s website," said FASB Chairman Leslie F. Seidman.
The deferral will become effective upon issuance of the final Update for all
financial statements that have not yet been issued, which is expected to be
issued in the next few weeks. It will be available on the FASB website at http://www.fasb.org/.