FASB issues proposed ASUs on pensions and other postretirement benefit plans
Jan 26, 2016
The FASB has issued two proposed ASUs: (1) “Changes to the Disclosure Requirements for Defined Benefit Plans” and (2) “Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost.”
Changes to the disclosure requirements for defined benefit plans
This proposal would “modify the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans” and disaggregate these disclosures between domestic and foreign plans.
Improving the presentation of net periodic pension cost and net periodic postretirement benefit cost
Under this proposal, an employer would be required to report the service cost component in the same line item(s) as other compensation costs arising from services rendered by the pertinent employees during the period. The proposal also allows only the service cost component to be eligible for capitalization when applicable.
Next steps
Comments on both proposals are due by April 25, 2016. For more information about the proposed ASUs, see Deloitte's related Heads Up newsletter as well as the press release, FASB in Focus newsletter, and informational document on the FASB’s Web site.
