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CCH® PENSION AND BENEFITS — 11/25/08

FASB agrees to three additional disclosures of fair value of asset valuation

At its October 29, 2008, meeting, the Financial Accounting Standards Board (FASB) approved revisions to Financial Accounting Statement (FAS) 132(R)-a, Employers’ Disclosures about Postretirement Benefit Plan Assets. In addition to setting an effective date of fiscal years ending after Dec. 15, 2009, the FASB approved three additional items of disclosure. Employers will have to disclose separately the following for each major category of plan assets:

(1) the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets and liabilities (level 1), significant other observable inputs (level 2), and significant unobservable inputs (level 3);

(2) information about the valuation techniques and inputs used to measure fair value and a discussion of changes in valuation techniques and inputs, if any, during the period; and

(3) a reconciliation of the beginning and ending balances for fair value measurements of plan assets using significant unobservable inputs (level 3), presenting changes during the period attributable to actual return on plan assets; purchases, sales, and settlements (net); and transfers in and/or out of level 3.

The FASB added that in the first year, employers will not be required to make calculations for earlier years for comparative purposes with these new disclosures.

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