This publication, which updates Financial Reporting Alert 11-6 (link to Deloitte (United States) website), highlights accounting considerations related to the calculations and disclosures entities provide under U.S. GAAP in connection with their defined benefit pension and other postretirement benefit plans. New topics addressed in this update are (1) new disclosure requirements for multiemployer plans, (2) financial reporting considerations resulting from health care legislation, and (3) the relationship between the discount rate and medical trend rate for other postretirement benefit plans.

Contents

• Accounting Standards Update
  • New Disclosures About an Employer’s Participation in a Multiemployer Plan
• Health Care Legislation
  • Affordable Care Act and Health Care and Education Reconciliation Act of 2010
  • Employee Group Waiver Plans
  • Moving Ahead for Progress in the 21st Century Act
• Underlying Assumptions
• Discount Rate
  • Discount Rate Selection Method
  • Hypothetical Bond Portfolios — Bond Pricing
  • Hypothetical Bond Portfolios — Bond Selection
  • Hypothetical Bond Portfolios — Use of Collateralized Bonds
  • Use of a Yield Curve Developed by a Third Party in Selecting a Discount Rate
  • Use of Indices in Selecting a Discount Rate
  • Other Postretirement Benefit Plans — Discount Rate and Health Care Cost Trend Rate
• Expected Long-Term Rate of Return
• Mortality Assumption
• Net Periodic Benefit Cost
  • Changes to Accounting Policies for Gains and Losses and Market-Related Value of Plan Assets
• Measurement Date for Plan Assets and Benefit Obligations
  • Measurement of Plan Assets
  • Measurement of Benefit Obligations
• Curtailments
• Settlements
• Plan Sponsor Disclosures
  • Fair Value Measurement Disclosures
  • Entities With Foreign Plans

The full text of this Financial Reporting alert can be downloaded via the link below.

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