Expand
Resize
Add to favorites
This section covers special considerations for nonpublic companies and highlights the differences in disclosure requirements from those applicable to public reporting entities.
A "nonpublic entity" is defined in ASC 715 as follows:

Definition from ASC 715-20-20

Any entity other than one with any of the following characteristics:
  1. Whose debt or equity securities trade in a public market either on a stock exchange (domestic or foreign) or in the over-the-counter market, including securities quoted only locally or regionally
  2. That is a conduit bond obligor for conduit debt securities that are traded in a public market (a domestic or foreign stock exchange or an over-the-counter market, including local or regional markets)
  3. That makes a filing with a regulatory agency in preparation for the sale of any class of debt or equity securities in a public market
  4. It is required to file or furnish financial statements with the Securities and Exchange Commission.
  5. That is controlled by an entity covered by (a) through (d).

The disclosures for nonpublic company defined benefit plans are similar to those of a public reporting entity, with several exceptions, as illustrated in Figure FSP 13-3 (post-adoption of ASU 2018-14) and Figure FSP 13-3A (pre-adoption of ASU 2018-14).
Figure FSP 13-3
Differences in disclosure requirements for nonpublic entities post adoption of ASU 2018-14
Required disclosures for public but not nonpublic entities
Required disclosures for nonpublic entities
Nonpublic entity reporting reference
Section where public company requirements are discussed
Reconciliation of the beginning and ending balances of the benefit obligation and the fair value of plan assets
End of year balances for benefit obligation and fair value of plan assets, employer and participant contributions, and benefits paid
Reconciliation of the opening balances to the closing balances of plan assets measured on a recurring basis in Level 3 of the fair value hierarchy.
Amounts of transfers into and out of Level 3 of the fair value hierarchy and purchases of Level 3 plan assets
Components of net periodic benefit cost
Amount of net periodic benefit cost
Significant change in benefit obligation or fair value of plan assets, including an explanation of the reasons for significant gains and losses affecting the benefit obligation
Nature and effect of significant nonroutine events, including an explanation of the reasons for significant gains and losses affecting the benefit obligation
Alternative method used to amortize prior service cost or gains and losses
Not applicable
Not applicable
Substantive commitment used as a basis for accounting for benefit obligation
Not applicable
Not applicable
Figure FSP 13-3A
Differences in disclosure requirements for nonpublic entities pre-adoption of ASU 2018-14
Required disclosures for public but not nonpublic entities
Required disclosures for nonpublic entities
Nonpublic entity reporting reference
Section where public company requirements are discussed
Reconciliation of the beginning and ending balances of the benefit obligation and the fair value of plan assets
End of year balances for benefit obligation and fair value of plan assets, employer and participant contributions, and benefits paid
Components of net periodic benefit cost
Amount of net periodic benefit cost
One percentage point sensitivity analysis for healthcare cost trend rates
Not applicable
Not applicable
Significant change in benefit obligation or fair value of plan assets
Nature and effect of significant nonroutine events
Alternative method used to amortize prior service cost or gains and losses
Not applicable
Not applicable
Substantive commitment used as a basis for accounting for benefit obligation
Not applicable
Not applicable
Expand

Welcome to Viewpoint, the new platform that replaces Inform. Once you have viewed this piece of content, to ensure you can access the content most relevant to you, please confirm your territory.

signin option menu option suggested option contentmouse option displaycontent option contentpage option relatedlink option prevandafter option trending option searchicon option search option feedback option end slide