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Statement of Position for Health and Welfare Benefit Plans Issued.

Statement of Position 01-2, Accounting and Reporting by Health and Welfare Benefit Plans (No. 014929CPA06), has been issued by the Accounting Standards Executive Committee. This SOP amends chapter 4 of the AICPA Audit and Accounting Guide Audits of Employee Benefit Plans, and SOP 92-6, Accounting and Reporting by Health and Welfare Benefit Plans.

Among other things, this SOP:

* Specifies the presentation requirements for benefit obligations information. (It allows information about the benefit obligations to be presented in a separate statement, combined with other information on another financial statement, or presented in the notes to the financial statements.)

* Requires disclosure of information about retirees' relative share of the plan's estimated cost of providing post-retirement benefits.

* Clarifies the measurement date for benefit obligations.

* Establishes standards of financial accounting and reporting for post-employment benefits provided by health and welfare benefit plans.

* Requires disclosure of the discount rate used for measuring the plan's obligation for post-employment benefits.

* Requires the identification of investments representing 5% or more of the net assets available for benefits.

Effective for financial statements for plan years beginning after Dec. 15, 2000, earlier application of the SOP is encouraged. Financial statements presented for prior plan years are required to be restated to comply with the SOP's provisions.

To order a copy of SOP 01-2, contact the Member Satisfaction Center (see page 14; price: $10.50 member, $13 non-member).
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Publication:CPA Letter
Article Type:Brief Article
Geographic Code:1USA
Date:Jun 1, 2001
Previous Article:Auditing Standards Board Votes to Issue SAS No. 94.

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