Disclosure Framework—Disclosure Review: Defined Benefit Plans
Last updated on August 31, 2015. Please refer to the Current Technical Plan for information about the expected release dates of exposure documents and final standards.
(Updated sections are indicated with an asterisk *)
The staff has prepared this summary of Board decisions for information purposes only. Those Board decisions are tentative and do not change current accounting. Official positions of the FASB are determined only after extensive due process and deliberations.
Project Objective and OverviewThe objective and primary focus of the Disclosure Framework project is to improve the effectiveness of disclosures in notes to financial statements by clearly communicating the information that is most important to users of each entity’s financial statements. Achieving the objective of improving effectiveness will require development of a framework that promotes consistent decisions about disclosure requirements by the Board and the appropriate exercise of discretion by reporting entities.
The objective of improving effectiveness will require development of a framework that promotes consistent decisions about disclosure requirements by the Board and the appropriate exercise of discretion by reporting entities. To achieve this objective, the Disclosure Framework project comprises two components: the Board’s Decision Process and the Entity’s Decision Process.
Currently four disclosure areas are being evaluated as part of the Disclosure Framework project. Each review will include (1) evaluation of existing disclosure requirements within the Topic after applying the concepts in the Board’s decision process and (2) promotion of the appropriate use of discretion by entities specifically within the Topic.
This page provides updates on the disclosure review of Defined Benefit Plans (715-20-50). For information on the other three disclosure reviews, see the following:
The FASB staff has developed a “Q&A: FASB’s Disclosure Framework Project” fact sheet which can be viewed here.
Decisions Reached at Last Meeting (July 9, 2015)The Board decided that private companies would no longer be required to disclose a reconciliation of the opening balances to the closing balances of plan assets measured on a recurring basis in Level 3 of the fair value hierarchy. Instead, private companies would disclose transfers into and out of Level 3 of the fair value hierarchy and the amount of purchases of plan assets measured at Level 3 of the fair value hierarchy.
*Tentative Board Decisions Reached to Date (As of August 27, 2015)Tentative Board Decisions Reached to Date
Next StepsThe Board will continue its discussion about potential changes to the disclosure requirements for defined benefit plans at an upcoming meeting.
*Board/Other Public Meeting DatesThe Board meeting minutes are provided for the information and convenience of constituents who want to follow the Board’s deliberations. All of the conclusions reported are tentative and may be changed at future Board meetings. Decisions become final only after a formal written ballot to issue a final standard.
|*July 9, 2015||Board Meeting—Defined Benefit Plan Disclosures|
|June 29, 2015||Board Meeting—Defined Benefit Plan Disclosures and Transition|
|August 20, 2014||Board Meeting—Defined Benefit Plan Disclosures and Appropriate Use of Discretion by Reporting Entities|
|June 11, 2014||Board Meeting—Defined Benefit Plan Disclosures and Potential Changes on the Basis of the Proposed Concepts Statement|
|April 4, 2014||Board Meeting—Field Study Results and Next Steps|
Contact InformationNick Cappiello
Postgraduate Technical Assistant
Postgraduate Technical Assistant