FASB aims to improve guidance on market-return cash balance plans

FASB recently released a proposed ASU that aims to improve its accounting guidance for certain market-return cash balance plans.

Market-return cash balance plans are a type of cash balance plan in which interest crediting rates are based on investable market returns.

Stakeholders previously expressed concern that FASB’s current guidance may not fully reflect the economics of these plans.

To address those concerns, FASB said the amendments would specify the discount rate required to be used to measure the benefit obligation for certain market-return cash balance plans.

FASB will accept public comments on the proposed ASU through Monday, Aug. 10. Read more.