Flashcards in Employee Benefit Plans/Trusts FS Deck (4)
What are the 2 financial statements that must be prepared for Employee benefit plans and trusts according to GAAP?
1. statement of net assets available for benefits of the plan as of the end of the plan year.
2. statement of changes in net assets available for benefits of the plan for the year then ended
What 4 things must be included in the statement of net assets available for benefits of the plan?
1. total assets
2. total liabilities
3. net assets reflecting all investments at fair value
4. net assets available for benefits
What 8 things must be included in the statement of changes in net assets?
1. change in FV of each significant type of investment, including participant-directed and self-directed investments held in brokerage accounts. Gains and losses from investments sold need not be segregated from unrealized gains/losses relating to investments held at year end. May include in accompanying footnotes
2. investment income, exclusive of changes in FV
3. contributions from ER, segregated between cash and noncash contributions (noncash is recorded at FV, nature of noncash shall be described in either parenthetically or in a note)
4. contributions from participants, including those transmitted by the sponsor
5. contributions from other identified sources (ex state subsidies or federal grants)
6. benefits paid to participants
7. payments to insurance entities to purchase contracts that are excluded from plan assets
8. admin expenses