2013-07-10 AcSB Issues Exposure Draft - Reporting Employee Future Benefits by Not-for-Profit Organizations

Background

In May 2013, the AcSB issued Section 3462, Employee Future Benefits, in Part II of the Handbook. Section 3462 is effective for fiscal years beginning on or after January 1, 2014. A summary of the requirements of Section 3462 can be found in Newsletter 2013-059.

A not-for-profit organization (NFPO) applying Part III of the Handbook also applies the standards in Part II, to the extent that the Part II standards address topics not addressed in Part III.

Main features of the Exposure Draft

The AcSB proposes adding a new standard to Part III that would provide guidance for defined benefit plans on recognition and presentation of remeasurements and other items that is different from Section 3462, Employee Future Benefits, in Part II.

The main features of the proposals are summarized as follows:

  • "Remeasurements and other items" (consisting of actuarial gains and losses, past service costs, settlements, and curtailments) would be:
    • recognized directly in net assets in the statement of financial position, rather than in the statement of operations; and
    • presented as a separately identified item in the statement of changes in net assets.
  • Remeasurements and other items would not be reclassified from net assets to the statement of operations in a subsequent period.
  • Retrospective application would generally be similar to the requirements in Section 3462 with additional guidance related to the different recognition and presentation of remeasurements and other items.
  • An NFPO would apply all the other requirements in Section 3462.

Consistent with the requirements of Section 3462, the final standard will be effective for fiscal years beginning on or after January 1, 2014. Earlier application will be permitted, but only if adopted for all of an NFPO’s benefit plans.

Exposure Draft

Comments on the exposure draft are requested by August 27, 2013. A copy of the exposure draft can be found at the following link: Reporting Employee Future Benefits by Not-for-Profit Organizations