Tuesday, October 4, 2011

FASB Has Reissued its Accounting Standards Update

We previously advised our friends and clients about the Financial Accounting Standards Board (FASB) decision to withdraw the requirement that an employer contributing to a multi-employer pension plan must include the employer's share of the plan's unfunded liability on its financial statement. FASB has now reissued its Accounting Standards Update (No. 2011-09). Although employers will not have to include a calculation of their share of a plan's unfunded liability, they will have to include funding information about multi-employer pension plans to which they are obligated to contribute. Employers should work with their counsel to determine how to obtain that information from the plans. The new rule applies to all nongovernmental employers contributing to multi-employer pension plans. It is effective for fiscal years ending after December 15, 2011 for publicly held employers, and for fiscal years ending after December 15, 2012 for non-publicly held employers. The Accounting Standards Update can be found here.

Each case a business or individual may face is unique and may require legal advice. If you would like additional information regarding the content of this article, please contact the author, Keith Overholt, or the Chair of our Labor and Employment Department, John Egbert.

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