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

Why cybercriminals are targeting CPAs

This free report expands on the most commonly found scams, why education and specialized IT knowledge help to lessen security vulnerabilities, and why every firm should plan carefully for how it would respond to a breach.

PODCAST

How tax reform — and Excel — are changing the CPA Exam

Mike Decker, the vice president of examinations at the AICPA, discusses changes being made to the exam as a result of tax reform — and about how Excel will now be available for use on the test.