AICPA releases Q&A on effect of new mortality tables


The AICPA on Wednesday issued new nonauthoritative guidance about how and when nongovernmental employee benefit plans and nongovernmental sponsoring entities should consider, for financial reporting purposes, newly updated mortality tables if their financial statements have not yet been issued at the time the updated tables are published.

The Society of Actuaries’ Retirement Plans Experience Committee released in October 2014 its RP-2014 Mortality Tables Report, which includes new mortality tables developed for use by pension plans.

Question and Answer (Q&A) Section 3700.01 (AICPA Technical Questions and Answers) explains that the plans and sponsoring entities should consider the specific requirements of GAAP, which requires the use of a mortality assumption that reflects the best estimate of the plan’s future experience for purposes of estimating the plan’s obligation as of the current measurement date. The Q&A relates to both employer and plan pension obligations.

SPONSORED REPORT

Tax reform complicates year-end tax planning

Get your clients ready for tax season with these year-end tax planning strategies, which address how to make the most of recent tax law changes, such as the new deduction for qualified business income and the cap on the deductibility of state and local taxes.

VIDEO

What RPA is and how it works

Robotic process automation is like an Excel macro that can work on multiple applications, says Danielle Supkis Cheek, CPA. RPA can complete routine, repetitive tasks such as data entry, freeing up employee time from lower-level chores.