The FASB voted to defer indefinitely certain disclosures about investments held by a non-public employee benefit plan in its plan sponsor's own non-public equity securities.
The FASB will issue an Accounting Standards Update, 'Fair Value Measurement (Topic 820): Deferral of the Effective Date of Certain Disclosures for Non-public Employee Benefit Plans' in Update No. 2011-04, in the next few weeks.
The indefinite deferral applies to disclosures of certain quantitative information about the significant unobservable inputs used in Level 3 fair value measurement for investments held by certain employee benefit plans. The deferral applies specifically to employee benefit plans—other than those plans that are subject to SEC filing requirements—that hold investments in their plan sponsors’ own non-public entity equity securities, including equity securities of their non-public affiliated entities.
“Today’s decision is responsive to private company stakeholders, addressing their concern that certain disclosure requirements would potentially provide proprietary information when their employee benefit plans’ financial statements are posted on the plan regulator’s website”, said FASB Chairman Leslie F Seidman.
Press release
© FASB
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