The Financial Accounting Standards Board (FASB) is examining options to simplify employee benefit plan (EBP) accounting standards.
EBP financial reporting has historically been complex. During the 2014 fiscal year, the Employee Benefits Security Administration (EBSA) processed 26,665 applications from plan sponsors seeking to voluntarily correct mistakes in their benefit plan reporting.
Prompted by the AICPA's EBP Expert Panel, FASB's Emerging Issues Task Force (EITF) added Issue No. 15-C, Accounting Issues in Employee Benefit Plan Financial Statements to its agenda in November 2014. A proposed agenda for employee benefit plan simplifications was made available prior to the March 19, 2015, EITF meeting.