Dataline: Multiemployer benefit plans -- Recent accounting & reporting developments (No. 2010-41)

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The recent economic crisis has resulted in increased levels of underfunding for many multiemployer pension and other postretirement benefit plans. Financial statement users have raised concerns about the current disclosure requirements and the lack of information they provide about the commitments and risks involved with an employer's participation in a multiemployer plan. In response, both the FASB and IASB recently issued separate exposure drafts that propose significant additional disclosure requirements for participating employers. This Dataline describes the accounting considerations for employers who participate in a defined benefit multiemployer plan, as well as the additional disclosure requirements proposed by the FASB and IASB.