PSC Provides Feedback on FASB Proposed ASU-Compensation (Subtopic 715-30)
The PSC supports the proposed ASU clarifying the discount rate for certain market-return cash balance plans. The committee also commends the FASB for improving consistency in practice and better reflecting the economics of these plans.
The TXCPA Professional Standards Committee (PSC) expressed support for the proposed Accounting Standards Update (ASU) on defined benefit pension plans, specifically the amendments clarifying the discount rate used to measure benefit obligations for certain market-return cash balance plans. The PSC commended the FASB for its efforts to better align accounting standards with the economic realities of these plans and to reduce inconsistencies in how the guidance under Subtopic 715-30 is applied in practice.
Additionally, the PSC indicated that it does not anticipate any significant implementation or auditing challenges resulting from the proposed amendments and supports allowing entities to adopt the guidance early.
Read the Exposure Draft here. View TXCPA PSC comment letter here.
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