GASB Proposes Changes to Certain Component Unit Criteria and Section 457 Deferred Compensation Plans
March 9, 2020
The GASB has issued an exposure draft (ED), Certain Component Unit Criteria, and
Accounting and Financial Reporting for Internal Revenue Code Section 457
Deferred Compensation Plans. The ED “would increase consistency and
comparability related to the reporting of fiduciary component units in circumstances
in which the organization does not have a governing board and the primary government
performs the duties that a governing board typically performs.”
In addition, the ED would “enhance the relevance, consistency, and comparability of
accounting and financial reporting for Section 457 deferred compensation plans that
meet the definition of a pension plan and for benefits provided through those
plans.”
Comments on the ED are due by April 10, 2020. For more information, see the
press release on the GASB’s Web site.