FASB ISSUES STANDARD DEFERRING SOME DISCLOSURES FOR NONPUBLIC EMPLOYEE
BENEFIT PLANS
Norwalk, CT, July 8, 2013—The Financial
Accounting Standards Board (FASB) today published a new Accounting Standards
Update that defers indefinitely certain disclosures about investments held by
nonpublic employee benefit plans in their plan sponsors´ own nonpublic equity
securities. The Update, which
was approved on June 12, is available to download at no cost on the FASB
website.
Accounting Standards Update No. 2013-09, Fair Value
Measurement (Topic 820): Deferral of the Effective Date of Certain Disclosures
for Nonpublic Employee Benefit Plans in Update No. 2011-04, 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.
"The Update addresses private
company stakeholder concerns 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 Russell G. Golden.
The deferral is effective immediately for all
financial statements that have not yet been issued.
About the
Financial Accounting Standards Board
Since 1973, the Financial
Accounting Standards Board has been the designated organization in the private
sector for establishing standards of financial accounting and reporting. Those
standards govern the preparation of financial reports and are officially
recognized as authoritative by the Securities and Exchange Commission and the
American Institute of Certified Public Accountants. Such standards are essential
to the efficient functioning of the economy because investors, creditors,
auditors, and others rely on credible, transparent, and comparable financial
information. For more information about the FASB, visit our website at http://www.fasb.org/.