On The Horizon - July 9, 2013

FASB

ASU defers effective date for nonpublic employee benefit plan disclosures

The Board recently issued Accounting Standards Update (ASU) 2013-09, Deferral of the Effective Date of Certain Disclosures for Nonpublic Employee Benefit Plans in Update No. 2011-04, to indefinitely defer the effective date for disclosing unobservable inputs in Level 3 fair value measurements of investments held by a nonpublic employee benefit plan in its private company plan sponsor, including the plan sponsor's nonpublic affiliated entities.

This ASU addresses private companies' concerns that the previously required disclosures potentially could expose proprietary information about their securities, since the financial statements filed by participating nonpublic employee benefit plans can be publicly accessed on the U.S. Department of Labor's website. The amended guidance does not defer the effective date for required quantitative disclosure for other nonpublic entity