Defining Issues | August 2018
FASB amends defined benefit plan disclosures
Filed under: Presentation, Expenses, Compensation – other
KPMG reports on ASU 2018-14 and examines amendments to disclosures for defined benefit pension and other postretirement benefit (OPEB) plans. The amendments aim to improve the overall usefulness of disclosures to financial statement users and reduce unnecessary costs to companies when preparing the disclosures.
Applicability
- All companies that provide defined benefit pension or other postretirement benefit plans for employees
Relevant dates
Mandatory effective dates and early adoption provisions
Effective date:
Public business entities
All other entities
Annual periods – Fiscal years ending after
December 15, 2020
December 15, 2021
Interim periods – In fiscal years beginning after
No amendments made to interim disclosures
No amendments made to interim disclosures
Early adoption allowed?
Yes
Yes
Retrospection transition required?
Yes
Yes
Key impacts
- Pension plan and OPEB disclosures amended as part of the FASB’s disclosure framework project
- A number of disclosure requirements that are not decision-useful to users eliminated – e.g. the effects of a one-percentage point change in the assumed healthcare cost trend
- Decision-useful disclosures that will not impose significant costs on preparers added – e.g. the weighted-average interest crediting rates for cash balance plans
Report contents
- Applicability
- Key facts and impacts
- Testing the disclosure framework
- Eliminated disclosures
- New disclosure requirements
- Status quo
- Effective dates and transition
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