What is Employee benefit plan financial statements?
In short
Employee benefit plans issue their own financial statements, separate from the sponsoring employer's, including a statement of net assets available for benefits and a statement of changes in those net assets.
Key takeaways
- Plan investments are generally reported at fair value.
- Defined benefit plans also report the actuarial present value of accumulated plan benefits.
- Many plans must be audited and file annual reports with the Department of Labor.
Where it's tested
BAR: Employee Benefit Plan Accounting — study notes, a five-minute revision sheet and practice questions.
Practise: 3 questions
Question 1 of 3 · 0 answered
In the financial statements of a defined benefit pension plan itself, the plan's investments are generally reported at: