News & Updates
FASB Update
In September, National FCA reported on proposed Financial Accounting Standards Board (FASB) accounting standards and reporting changes aimed at increasing the disclosure of loss contingencies (Exposure Draft, Contingencies (Topic 450): Disclosure of Certain Loss Contingencies related to potential withdrawal liability, even though the employer viewed the likelihood of incurring that liability as remote or slight. FASB released an additional exposure draft in September that would require multiemployer plan sponsors to provide a narrative description of their exposure to liability to the multiemployer plans.
In the past week several new developments have occurred. FASB, at its October 27, 2010 meeting, postponed the loss contingency standard indefinitely after receiving a barrage of critical comment letters. The Exposure Draft, Contingencies (Topic 450): Disclosure of Certain Loss Contingencies, had proposed that public entities would begin providing enhanced disclosures in financial statements for fiscal years ending after December 15, 2010. The Board decided that a final standard will not be effective for the 2010 calendar year-end reporting period. It will decide on an effective date at a future meeting, after it has substantially concluded its redeliberations.
Additionally, the Campaign for Quality Construction (CQC) a coalition of six national contractor associations including National FCA, Sheet Metal and Air Conditioning Contractors’ National Association (SMACNA), National Electrical Contractors Association (NECA), Mechanical Contractors Association of America (MCAA), The Association of Union Constructors (TAUC), and International Council of Employers of Bricklayers and Allied Craftworkers (ICE), sent an expert advisory panel for a private meeting to FASB on October 29, 2010 to discuss FASB's recent multiemployer defined benefit pension plan disclosure rules - Exposure drafts 450 and 715. The meeting was held with the two FASB Board members and two professional staff. The CQC meeting with FASB explored many of the issues relating to both ED450 and 715, and it is expected that the FASB staff will propose a similar delay in Exposure Draft 715-80 at an upcoming November 10th Board meeting.
National FCA and the Campaign for Quality Construction is planning on further direct collaboration with FASB in the interim period.
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