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Employee benefit plans must measure and report all investments in their financial statements at "fair value" in accordance with FASB ASC 820, Fair Value Measurements and Disclosures (FAS 157, Fair Value Measurements.) These requirements are important to all plans that are audited, whether a full scope or limited scope audit is performed. FASB ASC 820 (FAS 157) establishes a fair value framework for valuing investments in plan financial statements, discusses acceptable valuation techniques, discusses inputs to valuation techniques, establishes a fair value hierarchy that prioritizes the inputs, and requires extensive financial statement disclosures about the valuation of plan investments.
The Center has compiled and developed resources to assist auditors in understanding FASB ASC 820 (FAS 157.) Those resources can be accessed through the following links:
Getting Started: Applying New Accounting Rules for Measuring and Reporting Fair Value of Plan Investments: Considerations for Employee Benefit Plan Implementation of FASB Statement No. 157, Fair Value Measurements
Share this document with your plan sponsor clients to help ensure that they have the information necessary to make proper valuations of and disclosures about plan investments in the plan's financial statements using the new FASB ASC 820 (FAS 157) fair value measurement criteria. Learn More>>
New Accounting Rules for Valuing and Reporting Investments in Plan Financial Statements: A Summary of the Reporting and Disclosure Requirements of FASB Statement No. 157, Fair Value Measurement
This document summarizes the key provisions of FASB ASC 820 (FAS 157) and recently issued clarifying guidance. Learn More>>
Assessing the Fair Values of Your Plan Investments: Considerations for Plan Management in Understanding How Fair Values Are Determined under FASB Statement No. 157, Fair Value Measurements
This document contains suggested considerations that might be relevant as your plan sponsor clients assess the valuation of their plan's investments. Learn More>>
Illustrative FAS 157 Disclosures - This document provides an illustration of the disclosures required by FASB ASC 820 (FAS 157) for a hypothetical defined contribution plan's investments. The illustrations are excerpted from Appendix E of the 2009 AICPA Audit and Accounting Guide Employee Benefit Plans, which will be available in print edition in May 2009 from the AICPA Store at http://www.cpa2biz.com.
FAS 157 Plan Sponsor FAQs - This document includes answers to frequently asked questions plan sponsors may have about the implementation of FASB ASC 820 (FAS 157).
EBPAQC Plan Advisory: Valuing and Reporting Plan Investments
The Center has prepared this Plan Advisory for you to share with your plan sponsor clients to help them in understanding their responsibilities for valuing and reporting their plan investments. Learn More>>
Center Member Call
EBPAQC Live Forum - FAS 157 Implications to Employee Benefit Plans
January 7, 2009, 1:00 pm – 3:00 pm, ET
FAS 157, Fair Value Measurements
This Statement defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles (GAAP), and expands disclosures about fair value measurements. Learn More>>
FASB Staff Position No. 157-3, Determining the Fair Value of a Financial Asset When the Market for That Asset Is Not Active
In October 2008, the FASB Staff issued FASB Staff Position (FSP) No. FAS 157-3, which clarifies the application of FASB ASC 820 (FAS 157) in a market that is not active and provides an example to illustrate key considerations in determining the fair value of a financial asset when the market for that financial asset is not active. Learn More>>
SEC Office of the Chief Accountant and FASB Staff Clarifications on Fair Value Accounting
On Sept. 30, 2008, the SEC Office of the Chief Accountant and the FASB Staff issued a joint press release to provide clarification regarding questions surrounding the determination of fair value resulting from the current market environment. Learn More>>
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