FASB today issued a proposal to require a more detailed breakout of corporate pension fund asset allocations — specifying hedge funds, private equity, foreign exchange contracts, asset-based and structured debt as well as negative positions in derivatives or other instruments, among other types of assets — to obtain a better assessment of risk. The proposal includes “categories of plan assets that, if significant, should be disclosed” and “disclosures about the nature and amount of concentrations of risk arising within or across categories of plan assets” according to the FASB proposal.
Disclosure would include fair value measurements of assets, ranging from market-based pricing to less transparent pricing.
The proposed FASB staff position would amend FAS Statement 132, which was revised in 2003.
FASB is seeking comments on the proposal; respondents have until May 2 to submit comments. The proposal, posted at www.fasb.org, is expected to take effect for fiscal years ending after Dec. 15, 2008.
