Accounting Trends & Techniques -- Employee Benefit Plans

• Introduction
• Chapter 1: Disclosures Specific to Defined Benefit Pension Plans
  • 1. Description of Plan
  • 2. Summary of Significant Accounting Policies
  • 3. Investments
  • 4. Contracts With Insurance Companies
  • 5. Interest in Master Trusts
  • 6. Plan Amendments
  • 7. Plan Mergers and Acquisitions
  • 8. Plan Terminations
  • 9. Other
• Chapter 2: Disclosures Specific to Defined Contribution Pension Plans
  • 1. Description of Plan
  • 2. Summary of Significant Accounting Policies
  • 3. Investments
  • 4. Contracts With Insurance Companies
  • 5. Employer Contributions
  • 6. Interest in Master Trust
  • 7. Plan Amendments
  • 8. Plan Mergers, Acquisitions, and Spin-offs
  • 9. Plan Terminations
  • 10. Employee Stock Ownership Plans (ESOPs)
  • 11. Other
• Chapter 3: Disclosures Specific to Health and Welfare Benefit Plans
  • 1. Description of Plan
  • 2. Summary of Significant Accounting Policies
  • 3. Benefit Obligations
  • 4. Other
• Chapter 4: Other Financial Statement Disclosures
  • 1. Subsequent Events
  • 2. SOP 94-6, Disclosure of Certain Significant Risks and Uncertainties
  • 3. Commitments and Contingencies
  • 4. Derivatives
  • 5. Related Party Disclosures
  • 6. Prohibited Transactions
  • 7. Going Concern
  • 8. Tax Status
  • 9. Reconciliation of Financial Statements to Form 5500
  • 10. Excess Participant Contributions Payable
  • 11. Forfeitures
  • 12. Other
• Chapter 5: Limited Scope Audit Disclosures and Auditor's Reports
  • Disclosures
    • 1. Information Certified by Trustee
  • Auditor's Reports
    • 1. Limited Scope Audit Reports
    • 2. Prior Year Audited by Another Firm
    • 3. Change in Trustee
  • Chapter 6: Independent Auditor's Reports
    • Audit Reports - Following Two Sets of Standards
      • SEC Requirements
      • Applicable Audit Standards
      • Performance and Reporting Requirements
    • Auditing Interpretation No. 17 (Audit of Nonissuers)
    • 1. Unqualified Opinions
    • 2. Supplemental Schedules
    • 3. Prohibited Transactions
    • 4. Going Concern
    • 5. Prior Year Audited by Another Firm
    • 6. Initial Audits
    • 7. Audits of Issuers, Such as Form 11-K Filers
      • Reporting Considerations for Nonaccelerated Filer Audit Reports
  • Chapter 7: Illustrative Form 5500 Schedules
    • Reporting of Delinquent Participant Contributions
      • Reporting of Delinquent Loan Repayments
    • 1. Schedule of Assets (Held at End of Year)
    • 2. Schedule of Reportable Transactions
    • 3. Schedule of Nonexempt Transactions
  • Chapter 8: Management Letter Comments (Audits of Nonissuers)
    • What Are Management Letter Comments?
    • Sample Management Letters
    • Illustrative Management Letter Comments
    • 1. Benefits
    • 2. Contributions
    • 3. Distributions
    • 4. Investments
    • 5. Loans
    • 6. Participant Data Testing
    • 7. Internal Control
    • 8. Administrative Matters
    • 9. Other Matters

INTRODUCTION

This publication provides illustrative disclosures for financial statements of employee benefit plans. It has been issued by the Accounting and Auditing Publications group of the American Institute of Certified Public Accountants and is intended to provide practitioners with nonauthoritative practical guidance on such disclosures.

The contents of this publication, its focus, and the way it has been presented was originally shaped by the members of the 1997–1998 AICPA Employee Benefit Plans Committee recognizing the need for disclosure guidance in the area of employee benefit plans.

Please note that all years have been changed to reflect the current year as 20X2 (with 20X1 as the prior year and 20X3 the succeeding year).

This publication is organized to be used as a reference tool based on disclosures for specific types of pension plans as follows:

• Chapter 1 contains illustrative disclosures specific to defined benefit pension plans.
• Chapter 2 contains illustrative disclosures specific to defined contribution pension plans.
• Chapter 3 contains illustrative disclosures specific to health and welfare benefit plans.
• Chapter 4 contains illustrative disclosures general to all types of plans, such as subsequent events, related parties, and tax status.
• Chapter 5 contains illustrative disclosures and auditor reports for limited- scope audits.
• Chapter 6 contains illustrative auditors reports for all types of pension plans.
• Chapter 7 contains illustrative Form 5500 supplemental schedules.
• Chapter 8 contains illustrative management letters and comments for all types of employee benefit plans.

This publication is not a substitute for the authoritative pronouncements. Users of this publication are urged to refer directly to applicable authoritative pronouncements when appropriate.

These disclosures are intended as guidance only and should be tailored to the specific circumstances of each engagement. Although many of the disclosures contained herein are for single employer plans, many of the disclosures also pertain to multiemployer plans and should be modified appropriately. For further guidance on financial statement disclosures, see the Guide and the AICPA’s financial statement disclosure checklists: Checklists and Illustrative Financial Statements for Defined Contribution Pension Plans, Checklists and Illustrative Financial Statements for Defined Benefit Pension Plans, and Checklists and Illustrative Financial Statements for Health and Welfare Benefit Plans.