GASB issued a proposal Monday that addresses certain component unit criteria and accounting for certain Internal Revenue Code Sec. 457 deferred compensation plans.
The proposal is intended to increase consistency and comparability related to the reporting of fiduciary component units when the organization does not have a governing board and the primary government performs the duties that a governing board typically performs.
In addition, the proposal is designed to increase the relevance, consistency, and comparability of accounting and financial reporting for Sec. 457 deferred compensation plans that meet the definition of a pension plan, and for benefits provided through those plans.
For all Sec. 457 plans, the proposal also would supersede the remaining provisions of Statement No. 32, Accounting and Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation, as amended.
Comments are requested by April 10 and can be emailed to email@example.com.
—Ken Tysiac (Kenneth.Tysiac@aicpa-cima.com) is the JofA’s editorial director.