Pension measurement date requires a named plan, population, date, and evidence owner. The measurement date fixes the date for the obligation and plan-asset measures used in funded status. A qualifying closest-month-end election must be documented and applied consistently.
Apply it
A December 31 reporter that validly elects a November 30 measurement date must account for specified contributions and significant employer-caused events between those dates under the expedient rules.
Common mistake
Do not assume that any convenient date may be used for the pension measurement. Use the required measurement date and document any permitted practical expedient and intervening-event review. That error would combine balances measured on different dates and conceal intervening events before year-end release.
Keep the boundary clear
An available actuarial report does not create a valid date election. Record reporting date, elected date, intervening activity, required adjustment or remeasurement, and disclosure.
Authority
Read ASC 715-30-35-62 for the pension measurement-date practical expedient.
Put the concept to work
Apply this concept
- Explain and apply pension measurement date within a reconciled employer benefit-plan workpaper using supplied authoritative and actuarial facts.
Learning resources
Choose a lesson, try an application, or inspect the sources behind this concept.
Build on these ideas
- Employee benefit arrangement — Apply
To apply this concept: Required. This prior concept supplies the terms, date, or measurement needed here.