SUMMARY OF BOARD DECISIONS
Summary of Board decisions are provided for the information and
convenience of constituents who want to follow the Board’s deliberations. All of
the conclusions reported are tentative and may be changed at future Board
meetings. Decisions are included in an Exposure Draft for formal comment only
after a formal written ballot. Decisions in an Exposure Draft may be (and often
are) changed in redeliberations based on information provided to the Board in
comment letters, at public roundtable discussions, and through other
communication channels. Decisions become final only after a formal written
ballot to issue an Accounting Standards Update.
June 29, 2011 FASB Board MeetingDisclosures
about an employer’s participation in a multiemployer plan. The
Board continued its redeliberations of its September 2010 Exposure Draft of
proposed Accounting Standards Update, Compensation—Retirement
Benefits—Multiemployer Plans (Subtopic 715-80): Disclosure about an Employer’s
Participation in a Multiemployer Plan, and made the following tentative
decisions that would only apply to multiemployer pension plans:
The Board directed the
staff to conduct outreach with respect to the auditability of the following:
- An employer would be required to disclose the following:
- A description of the nature and effect of any changes affecting
comparability from period to period for each period for which a statement of
income is presented, including a business combination or a divestiture, the
rate of employer contributions, and the number of employees subject to
multiemployer pension plans
- Information about plan assets and liabilities and total contributions to
the multiemployer plan from all employers in circumstances in which the
information is not available in the public domain.
- An employer would not be required to disclose any of the
- Known trends in future contributions
- Estimated amounts of future contributions
- The percentage of its employees covered by multiemployer
- A subsidiary that participates in its parent entity’s single employer
defined benefit pension plan would be required to disclose the name of the
parent plan and the amount of contributions made in each period for which an
income statement is presented.
- The required disclosures would only apply to multiemployer pension plans.
For multiemployer health and welfare plans, certain aspects of the existing
disclosure requirements will be clarified. In addition, the Board may address
other aspects of the disclosure requirements related to multiemployer health
and welfare plans as part of a future project.
results of that outreach will be discussed at a future meeting.
- The percentage of the employer’s total contributions to a multiemployer
- The disclosure of information about plan assets and liabilities and total
contributions to a multiemployer plan in circumstances in which the
information is not available outside of the financial statements.
impairment assessments. The staff provided a comment letter summary
from the April 2011 proposed Accounting Standards Update (Update),
Intangibles–Goodwill and Other (Topic 350): Testing Goodwill for Impairment.
The Board discussed and affirmed the following aspects of the
Exposure Draft in light of the comments received:
In connection with its decision reached in (a)
above, the Board directed the staff to develop additional guidance for an entity
having a reporting unit with a zero or negative carrying amount to take into
consideration significant differences in the fair value of a reporting unit’s
assets and liabilities compared with their carrying amounts.
- The examples of events and circumstances to be assessed
- The implementation guidance would not include illustrative
- The scope would include both nonpublic entities and public
- Additional disclosures about the use of the qualitative assessment would
not be required
- An entity may have the option to test goodwill for impairment using a
decided not to expand the scope of the proposed Update to include the impairment
testing of other indefinite-lived intangible assets. However, in response to
concerns raised by preparers, the Board directed the staff to explore whether
there is an approach that would allow an entity to maintain its current practice
of carrying forward a prior year fair value calculation when testing an
indefinite-lived intangible asset for impairment.
On the basis of
concerns raised by some accounting firms about their ability to audit an
entity’s qualitative impairment assessment, the Board directed the staff to
conduct workshops with accounting firms, preparers, and regulators to discuss
implementation concerns and to clarify the Board’s intent about how to assess
relevant events and circumstances. The Board directed the staff to hold these
workshops in the near-term so that a final Update can be issued in the third
quarter of 2011.