The FASB proposed two changes to financial reporting of pension and other postretirement benefits: 1) Separating the reporting of pension costs into a service cost component and other components, presenting service cost with compensation costs and other components outside of operating results. 2) Eliminating some disclosure requirements deemed not useful while adding requirements to provide additional useful information about defined benefit plans. Comments on the proposals are due by April 25, 2016. The changes aim to improve transparency around pension reporting.
Hi everyone!
This is the document on Malaysian Private Entities Reporting Standard (MPERS). Hope it helps!
Sign up for OfficeCentral at http://www.OfficeCentral.com.my
The article below describes a new health care reform development (additional federal agency guidance on prohibition of premium reimbursement arrangements).
Rodel S. Navarro Business and Management Consultant and Director RODEL SY NAVARRO BUSINESS CONSULTANCY SERVICES (RSNBCS) Tel / Mobile: +63-0917-7333563 Email: rsnbcs@gmail.com http://www.slideshare.net/RSNBCS (About Business Laws compilation): http://www.slideshare.net/BUSINESSLAWSPH Email: businesslawsph@gmail.com
Hi everyone!
This is the document on Malaysian Private Entities Reporting Standard (MPERS). Hope it helps!
Sign up for OfficeCentral at http://www.OfficeCentral.com.my
The article below describes a new health care reform development (additional federal agency guidance on prohibition of premium reimbursement arrangements).
Rodel S. Navarro Business and Management Consultant and Director RODEL SY NAVARRO BUSINESS CONSULTANCY SERVICES (RSNBCS) Tel / Mobile: +63-0917-7333563 Email: rsnbcs@gmail.com http://www.slideshare.net/RSNBCS (About Business Laws compilation): http://www.slideshare.net/BUSINESSLAWSPH Email: businesslawsph@gmail.com
The latest Retirement Plan News contains articles on the following: 1) Make Benchmarking Your Plan An Annual Exercise 2) Employer Contribution Trends 3) QDIAS Ten years On
This issue of Retirement Plan News includes articles on the following: Post-severance compensation revisited, The fiduciary role and Tibble v. Edison, Bankruptcy and retirement plans.
When you need help for your online homework, you need professional experts and a dedicated organization to provide you with the best online assignment solutions which you can get at http://www.helpwithassignment.com/
ACC 460 MASTER Empowering and Inspiring/acc460master.comalbert00123
Review Ch. 1. Case 1-14, Research Case-GASB. Write a 175- to 350-word response. Compare the financial reporting needs of the resource providers of government
It was part of a coursework for the course 'Corporate Finance'. I, along with my three group mates, did financial modeling of BEXIMCO and GSK, two well-known pharmaceutical companies in Bangladesh. We analyzed both the companies' potential for merger & acquisitions.
The latest Retirement Plan News contains articles on the following: 1) Make Benchmarking Your Plan An Annual Exercise 2) Employer Contribution Trends 3) QDIAS Ten years On
This issue of Retirement Plan News includes articles on the following: Post-severance compensation revisited, The fiduciary role and Tibble v. Edison, Bankruptcy and retirement plans.
When you need help for your online homework, you need professional experts and a dedicated organization to provide you with the best online assignment solutions which you can get at http://www.helpwithassignment.com/
ACC 460 MASTER Empowering and Inspiring/acc460master.comalbert00123
Review Ch. 1. Case 1-14, Research Case-GASB. Write a 175- to 350-word response. Compare the financial reporting needs of the resource providers of government
It was part of a coursework for the course 'Corporate Finance'. I, along with my three group mates, did financial modeling of BEXIMCO and GSK, two well-known pharmaceutical companies in Bangladesh. We analyzed both the companies' potential for merger & acquisitions.
ciclo del servicio, estándares del servicio y triangulo del servicio, estrategias de atención personalizada: cara a cara, y a través de medios tecnológicos.
Powerful Video Storytelling for eRetailersGrant Crowell
Originally presented at the Internet Retailer Conference & Expo June 4, 2015.
Videos that engage shoppers demand a story—even if it’s only a 5- or 10-second story about a product’s benefits. Learn what makes video storytelling so compelling for engaging audiences; and discover strategies and tactics for your own video storytelling success.
Presented by:
Grant Crowell - Video Strategist - GC Interactive
Brian Massey - Founder and Managing Partner - Conversion Sciences
In late January, the FASB released two proposed accounting standards updates that affect Topic 715, Compensation—Retirement Benefits. One is designed to improve the presentation of net periodic pension cost and net periodic post-retirement benefit cost. The exposure draft seeks to clarify where entities report pension-related costs and how the costs are presented within the financial statements. The other addresses disclosure requirements for defined benefit plans.
As today's not-for-profit organizations shift from being purely mission focused to operating more “like a business,” certain core principles and fundamentals apply to both. To wit, it is vital for audit committee members to stay ahead of relevant changes to legal and regulatory requirements in this challenging environment. Take a look.
GASB's New Rules on Uniformity and Disclosure CBIZ, Inc.
An overview of the newly issued GASB rules
applicable to public pension plans, the reasons
for their implementation and issues created
by the new standards
While we continue to await final standards for financial instruments and leasing as well as clarifications to revenue recognition, the third quarter marked another period of relatively narrow changes from the Financial Accounting Standards Board (FASB). The majority of the sixteen Accounting Standards Updates (ASUs) that have been finalized during 2015 relate to narrow scope projects identified by the FASB. ASUs issued in the third quarter include narrow scope changes to inventory, derivative instruments, business combinations and more widely applicable changes to benefit plan presentations and disclosures.
The deferral of the effective date for the implementation of Accounting Standards Codification (ASC) Topic 606 was also finalized. Activity at the Public Company Accounting Oversight Board (PCAOB) consisted of approval of the reorganization of PCAOB Auditing Standards and certain requests for comment and discussion papers.
The following provides a brief overview of these accounting developments during the third quarter. A more detailed discussion of these standards and other proposals is available from our archived webinar series.
In 2016, the Financial Accounting Standards Board (FASB) released 20 accounting standards updates (ASUs). Among the more significant were changes to leasing, financial instruments and the not-for-profit reporting model.
Despite the completion of many significant projects, the FASB will likely remain active during 2017. Presently, it has 26 active projects, the most significant of which may be considered the proposed changes to hedge accounting originally issued in the third quarter of 2016. During the fourth quarter of 2016 and first couple weeks of 2017, the FASB issued seven accounting standards updates.
Regulatory Standard Settin Developments- Septmber 2015PwC
This publication provides a summary of activities of the PCAOB, SEC, and FASB, and related international developments that may be of interest to audit committees and companies.
The biggest accounting changes coming out of the third quarter affected not-for-profit organizations, but other projects received minor updates, too. In addition, several exposure drafts have been issued, including the expected exposure draft of targeted improvements to hedge accounting.
In depth: New financial instruments impairment modelPwC
On June 16, 2016, the FASB issued Accounting Standards Update 2016-13, Financial Instruments – Credit Losses (Topic 326) (the “ASU”). The ASU introduces a new model for recognizing credit losses on financial instruments based on an estimate of current expected credit losses. The new model will apply to: (1) loans, accounts receivable, trade receivables, and other financial assets measured at amortized cost, (2) loan commitments and certain other off-balance sheet credit exposures, (3) debt securities and other financial assets measured at fair value through other comprehensive income, and (4) beneficial interests in securitized financial assets.
The Financial Accounting Standards Board (FASB) completed its project on the classification and measurement of financial instruments with the release of Accounting Standards Update (ASU) 2016-01, Financial Instruments- Overall (Topic 825-10) Recognition and Measurement of Financial Assets and Financial Liabilities. The project began as one of the significant convergence projects with the International Accounting Standards Board (IASB), however, differences between the two Boards has resulted in accounting standards for financial instruments that are not converged in many respects.
The project included two previous exposure drafts issued in 2010 and 2013. The finalized ASU, however, differs in many significant respects from the changes proposed in each of those exposure drafts, largely due to the feedback received from constituents. The scope of the classification and measurement project ultimately became narrower in focus. It provides only targeted improvements to various aspects of the measurement and classification of financial instruments, primarily equity instruments.
The final ASU also provides disclosure relief for both public and non-public entities. Guidance for the classification and measurement of debt securities and loans receivable remains unchanged.
We remain in a relatively quiet time for changes in accounting and reporting standards affecting not-for-profit organizations, notwithstanding larger proposals affecting the intermediate and longer term.
EY's latest newsletter summarizes SEC developments in the last quarter. This issue highlights the remarks made by SEC staff members at the recent AICPA National Conference on Current SEC and PCAOB Developments related to SEC reporting implications of new accounting standards, non-GAAP financial measures and management’s discussions and analysis disclosure considerations for income taxes. We also discuss the SEC's progress on rulemaking and other initiatives, as well as significant personnel changes.
Similar to pwc-fasb-proposes-improvements-to-pension-and-opeb-benefits-reporting (20)
1. Insights
from People and Organization
www.pwc.com
FASB proposes improvements to the
financial reporting of pension and
OPEB benefits
February 2, 2016
In brief
On January 26, 2016, the Financial Accounting Standards Board (FASB or the Board) released two
proposed Accounting Standard Updates (ASUs or proposals) to improve employers financial reporting of
pension and other postretirement benefit (OPEB) plans, related to (1) the presentation of net periodic
pension and net periodic postretirement benefit cost (net benefit cost) and (2) disclosure requirements
for defined benefit plans.
The FASB proposed disaggregating the service cost component from the other components of net benefit
cost and presenting the service cost component with the reporting of other compensation cost for
employees providing service during the period. Further, the service cost component would be the only
amount capitalizable in assets. The other components of cost would be presented outside of operating
results (if applicable).
The FASB proposed eliminating certain disclosure requirements that are not considered useful, and
adding new disclosure requirements to provide additional information to meet the overall disclosure
objectives.
Comments on both proposals are due by April 25, 2016.
In detail
Background
Net benefit cost includes several
components, including current
period employee service cost,
interest cost on the obligation,
expected returns on plan assets,
and amortizations of various
amounts deferred from previous
periods. Each represents a
different aspect of a pension or
OPEB arrangement. Current
accounting requires these
components be aggregated and
reported as a net amount.
The FASB received feedback
from some stakeholders that
this aggregate presentation
combines elements that are
distinctly different in their
predictive value. As a result, this
presentation provides less value,
reduces transparency, and
requires users to incur greater
costs in analyzing financial
statements.
Additionally, as part of its
disclosure framework project,
the FASB reviewed and assessed
the current disclosure
requirements for defined benefit
plans with the goal of improving
the disclosure in the notes of
financial statement by providing
information that is most useful.
2. Insights
2 pwc
Presentation of net benefit cost
The FASB is proposing changes to the
presentation of the net benefit cost in
an effort to improve the transparency
and usefulness of financial
information. Under the proposal,
sponsors of defined benefit plans
would be required to:
1. disaggregate the service cost from
the other components of cost and
report the service cost component
with the reporting of other
compensation cost for employees
providing service during the
period,
2. present the other components of
cost outside of operating results (if
applicable), and
3. capitalize only the service cost
component (for example, as a cost
of inventory or a self-constructed
asset).
If a company will use a separate line
item or items to present the other
components of net benefit cost, that
line item or items would need to be
appropriately described.
The FASB is not changing any of the
recognition and measurement
provisions of employer’s current
accounting of defined benefit plans.
Observation
The proposed changes will affect all
companies that sponsor pension and
OPEB plans, but companies that
capitalize net benefit cost will be most
affected since only service cost will be
capitalized.
Companies should consider the
impact these changes will have on its
systems and processes, and consider
the impact on margins of only
capitalizing the service cost
component or of only including
service cost in operating results.
Companies may be considering
making other changes to accounting
for pension and OPEB plans, such as
adopting immediate recognition of
gains and losses, or changing the
manner in which discount rates are
used to calculate service cost and
interest cost. We encourage
companies to consider how these
changes would be impacted by the
proposed amendments.
Effective date and transition
The proposed amendments would be
applied retrospectively for the
presentation of service cost and the
other components of net benefit cost,
and prospectively for the
capitalization of service cost. The
effective date and whether early
adoption would be permitted will be
determined after the Board considers
the feedback received.
Defined benefit plan disclosures
The proposed amendments are
intended to align disclosure for
defined benefit plans with the FASB’s
broad disclosure objectives from its
conceptual framework, as part of its
separate disclosure framework
project. FASB believes the objectives
of the defined benefit plan disclosures
would be more clearly articulated
under the proposal.
Importantly, the proposal would also
clarify that materiality should be
considered when assessing the
disclosure requirements and would
emphasize that entities can use
appropriate discretion.
Observation
Many Companies believe that, to the
extent an accounting topic includes
phrases such as ‘an entity shall
disclose at a minimum…,’ that
judgment cannot be applied in
‘scaling’ the disclosure or omitting
certain disclosures, even if not viewed
to provide material information. This
amendment would clarify that these
materiality judgments are permitted
and appropriate.
The FASB proposed eliminating
disclosure requirements that are not
considered useful, and adding
disclosure requirements that would
provide additional useful information
to meet the overall disclosure
objectives.
The FASB proposed eliminating the
following disclosure requirements:
1. Amount of the pension
accumulated benefit obligation
(ABO),
2. Aggregate ABO and aggregate fair
value of plan assets for pension
plans with ABO in excess of plan
assets,
3. Amount and timing of plan assets
expected to be returned to the
entity,
4. Disclosures related to the June
2001 amendments to the Japanese
Welfare Pension Insurance Law,
5. Related party disclosures about the
amount of future annual benefits
covered by insurance and annuity
contracts, and significant
transactions between the employer
or related parties and the plan,
6. Amounts in accumulated other
comprehensive income expected to
be recognized as components of
net benefit cost over the next fiscal
year, and
7. For nonpublic entities, the
reconciliation of the opening
balances to the closing balances of
plan assets measured on a
recurring basis in Level 3 of the fair
value hierarchy. However, these
entities would be required to
disclose the amounts of transfers
into and out of Level 3 of the fair
3. Insights
3 pwc
value hierarchy and purchases of
Level 3 plan assets.
The FASB proposed requiring the
following new disclosure
requirements:
1. Description of the nature of the
benefits provided, employee
groups covered and the type of
benefit plan formula,
2. Weighted-average interest
crediting rate for cash balance
plans and other plans with a
promised interest crediting rate,
3. Quantitative and qualitative
disclosures required by ASC 820,
Fair Value Measurement, about
assets measured at net asset value
(NAV) using the NAV practical
expedient,
4. Description of the reasons for
significant gains and losses
affecting the benefit obligation or
plan assets,
5. Separate disclosures about
domestic and foreign defined
benefit plans, and further
disaggregation of disclosures if this
would provide material
information,
6. For nonpublic entities, effects of a
one-percentage-point change in
assumed health care cost trend
rates on the aggregate of the
service and interest cost
components of net benefit costs
and the benefit obligation for
postretirement health care benefits
(a disclosure already required for
public entities).
Observation
While the proposed disclosure
changes will impact all companies
that sponsor pension and OPEB
plans, the FASB does not anticipate
that companies will incur significant
cost related to the changes. The
elimination of certain requirements
would provide some relief to
employers, but the proposal would
require new disclosures that may
take some effort to prepare (e.g., the
quantitative and qualitative
disclosures about plan assets
measured at NAV).
Effective date and transition
These proposed amendments would
be applied retrospectively to all
periods presented, except for the
qualitative disclosures about plan
assets measured at net asset value,
which would only be required
beginning with the period of adoption.
The effective date and whether early
adoption would be permitted will be
determined after the Board considers
the feedback received.
Next steps
The comment period is open until
April 25, 2016, and we encourage you
to provide the Board feedback on the
changes and concerns or potential
unintended consequences.
The takeaway
The proposed changes to presentation
of net benefit cost and disclosures for
defined benefit plans may be coming
soon. While the changes may improve
the financial reporting of pension and
OPEB plans, there will be implications
of these changes that companies will
need to consider.