AGC has joined a construction industry advisory group established to work with the Financial Accounting Standards Board (FASB) on revising its proposal for enhanced disclosure standards by employers that contribute to multiemployer benefit plans. The advisory group includes representatives from other contractor associations and from the banking and surety industries.
AGC is represented in the advisory group by Eric Wallace, CPA and partner at Carbis Walker, LLP, of Pittsburgh, PA. Wallace is an active member of AGC’s Tax and Fiscal Affairs Committee who led an AGC task force that submitted detailed comments to FASB in response to its proposal in November 2010.
After receiving more than 335 comment letters – including 230 concerning the construction industry – FASB announced that it will delay issuance of a final standard until the second quarter of 2011 to allow more time for deliberations. The advisory group was then formed and met with FASB in fall 2010 to discuss construction industry issues. The group has been invited to continue collaborating with FASB and has developed a proposal for an alternative disclosure standard to present at a meeting with FASB in the end of March.
At a board meeting held March 9, FASB members expressed its intent to still issue a revised proposal or a final standard in the second quarter of this year, likely late in the quarter. (Click here to access a video recording of the meeting.) The Board appears to be still interested in increasing disclosure in this area, but it now seems to recognize the need for a standard which is more reliable and more manageable for companies. While the final standard remains to be seen, AGC is hopeful that the final standard will no longer include disclosure of withdrawal liability calculations.
AGC participation in the advisory group is the latest of AGC’s continuing activities to engage FASB on issues of concern to construction contractors. AGC last met independently with FASB in January and is planning to meet again in June. Both AGC and this advisory group will continue to monitor these developments and to meet with the FASB on this and other projects of interest.
For more information, contact Karen Lapsevic at (202) 547-4733 or firstname.lastname@example.org.