Defining Issues | February 2017
FASB amends EBP master trust reporting
KPMG reports on the EITF consensus, codified by the FASB as ASU 2017-06. The ASU clarifies how employee benefit plans will present and disclose investments in master trusts.
Applicability
- A reporting entity (e.g. defined benefit plan) that reports under plan accounting guidance
Relevant dates
Mandatory effective dates and early adoption provisions:
Effective date:
Annual periods – Fiscal years beginning after
Early adoption allowed?
All entities
Dec. 15, 2018
Yes
Key impacts
- Present the plan's interest in the master trust and the change in that interest in separate line items in the statement of net assets available for benefits and the statement of changes in net assets available for benefits, respectively
- Disclose the total master trust investment amounts by general type and the dollar amount of the plan's interest in each general type of investment
- Disclose the master trust's other assets and liabilities and the dollar amount of the plan's interest in each balance
- Disclose the net appreciation (depreciation) in the fair value of the investments of the master trust
- Describe the basis used to allocate net assets and total investment income to the plan
- Remove investment disclosures about 401(h) account assets to be provided in health and welfare benefit plan financial statements
Related content:
Defining Issues: EITF reaches final consensus on employee benefit plan reporting issues