AICPA Technical Questions and Answers (Nonauthoritative) Related to Employee Benefit Plans

Index The AICPA Technical Practice Aids publication contains Technical Questions and Answers on numerous topics and industries, including 70 Q&As specifically related to employee benefit plan auditing and accounting issues. The practice aid also includes AICPA Accounting and Auditing Statements of Position, selected PCAOB staff questions and answers and practice audit alerts, and guidance on providing assurance and advisory services on IT-enabled systems. This publication can be purchased either in hard-copy or as an online subscription through the AICPA store. Click here to order Technical Practice Aids. The following is the list of the TIS sections related to employee benefit plan accounting and auditing issues:

TIS Section No. Title

6930. Employee Benefit Plans

.01 When Does a Plan Have to File a Form 11-K?

.02 Defined Benefit Plan Measurement of a Life Insurance Policy

6931. Financial Statement Reporting and Disclosure – Employee Benefit Plans

.01 Computation of Net Appreciation/Depreciation in Fair Value of Investments

.02 Benefits Payable to Terminated Participants of a Defined Contribution Plan

.03 Should the Sale of Real Estate Investments Held by Employee Benefit Plans be Treated as Discontinued Operations?

.04 Depreciation of a Real Estate Investment Owned by a Defined Benefit Pension Plan

.05 Accounting and Disclosure Requirements for Single-Employer Benefit Plans related to the Medicare Prescription Drug, Improvement and Modernization Act of 2003

.06 Accounting and Disclosure Requirements for Multiemployer Employee Benefit Plans Related to the Medicare Prescription Drug, Improvement and Modernization Act of 2003

.07 Financial Statement Presentation of Underwriting Deficits

.08 Types of Investments Subject to FASB ASC 962

.09 Financial Statement Presentation When a Plan Invests in a Common Collective Trust Fund or in a Master Trust That Holds Fully Benefit-Responsive Investment Contracts

.10 Financial Statement Disclosure Requirements When a Plan Invests in a Common Collective Trust Fund or in a Master Trust That Holds Fully Benefit-Responsive Investment Contracts

.11 Fair Value Measurement Disclosures for Master Trusts

.12 Accounting and Disclosure Requirements for Health and Welfare Plans Related to the COBRA Premium Subsidy Included in the American Recovery and Reinvestment Act of 2009

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TIS Section No. Title

.13 Health and Welfare Plan Accounting for Reimbursements Received Under the Patient Protection and Affordable Care Act’s Early Retiree Reinsurance Program When the Reimbursement is Not Remitted to the Trust

.14 Health and Welfare Plan Accounting for Reimbursements Received Under the PPACA’s ERRP Described in TIS Section 6931.13

.15 Health and Welfare Plan Accounting for Reimbursements Applied to Prior Year-End But Not Approved Until After Year-End Under the PPACA’s ERRP Described in TIS Section 6931.13

.16 Accounting for the Effects of the Reimbursement on the Health and Welfare Plan’s Retirement Benefit Obligations Under the PPACA’s ERRP Described in TIS Section 6931.13

.17 Health and Welfare Plan Disclosures About the PPACA’s ERRP Described in TIS Section 6931.13

.18 Definition of “Imminent” Under Liquidation Basis of Accounting for Single-Employer Defined Benefit and Defined Contribution Retirement Employee Benefit Plans

.19 Applicability of Using Liquidation Basis of Accounting for Partial Plan Terminations or Plan Mergers for Single-Employer Plans

.20 Use of Beginning-of-Year Benefit Information Date Versus End-of-Year Benefit Information Date When Using the Liquidation Basis of Accounting for Single-Employer DB Plans

.21 Presentation of the Actuarial Present Value of Accumulated Plan Benefits of Single-Employer DB Plans When Using the Liquidation Basis of Accounting

.22 Contribution Receivable From the Plan Sponsor in a Standard Termination of a Single-Employer DB Plan

.23 Overfunded Single-Employer DB Plan When Using the Liquidation Basis of Accounting

.24 Accrued Costs When Using the Liquidation Basis of Accounting for a Single-Employer DB Plan

.25 Accrued Income When Using the Liquidation Basis of Accounting for a Single-Employer DB Plan

.26 Comparative Financial Statements When Using the Liquidation Basis of Accounting of a Single-Employer DB Plan

.27 Presentation of a Stub Period in a Single-Employer DB Plan When Using the Liquidation Basis of Accounting

.28 Presentation of Fully Benefit-Responsive Investment Contracts in Single-Employer DC Plans When Using the Liquidation Basis of Accounting

.29 FASB ASC Fair Value Disclosure When an Employee Benefit Plan is Using the Liquidation Basis of Accounting

.30 Single-Employer DB Plan Disclosures When Using the Liquidation Basis of Accounting

6932. ERISA Reporting and Disclosures

.01 Employee Benefit Security Administration Guidance on Insurance Company Demutualization

.02 When Should Participant Contributions by Considered Late Remittances?

.03 How Should Delinquent Loan Remittances Be Reported on the Form 5500?

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TIS Section No. Title

.04 How Should Participant Loans Be Reported on Defined Contribution Plan Master Trust Form 5500 Filings?

.05 How Should Investments in Brokerage Accounts Be Reported in the Financial Statements and Form 5500?

.06 Do All Types of Reconciling Items Between the Financial Statements and the Form 5500 Require a Reconciling Footnote in the Financial Statements?

.07 What Is the Requirement to Report Certain Transactions Under Individual Account Plans on the Schedule of Reportable Transactions?

.08 Is Noninterest-Bearing Cash an Asset on the Supplemental Schedule of Assets (Held at End of Year)?

.09 Is Netting of Investments on the Schedule of Assets (Held at End of Year) Permitted?

.10 Is the Schedule of 5 Percent Reportable Transactions Required for Defined Benefit Plans?

6933. Auditing Employee Benefit Plans

.01 Initial Audit of a Plan

.02 Investment Allocation Testing in an Electronic Environment

.03 Auditor’s Responsibility for Detecting Nonexempt Transactions

.04 Nonexempt Transactions

.05 Testing of Plan Qualification Tests Prepared by TPA

.06 Audit Procedures for Plan Mergers

.07 Audit Requirements for Remaining Portion of a Split Plan

.08 Audit Requirements for Frozen and Terminated Plans

.09 Audit Procedures When a Plan Operates in a Decentralized Environment

.10 Is the Master Trust Required to Be Audited?

6934. Limited-Scope Audits - Employee Benefit Plans

.01 Certifications by “Agent of”

.02 Limited-Scope Audit on a Portion of the Plan’s Investments

.03 Limited-Scope Audit – Plan Certifications for Master Trusts

.04 In a Limited-Scope Audit Is it Necessary to Test the Allocation of Investment Earnings at the Participant Account Level?

6935. SSAE No. 16 Reports – Employee Benefit Plans

.01 Audit Procedures When SSAE No. 16 Reports Are Not Available

.02 Allocation Testing of Investment Earnings When a Type 2 SSAE No. 16 Report Is Available

6936. Auditing Defined Contribution Plans

.01 Auditor’s Responsibility for Testing a Plan’s Compliance With Qualification Issues

.02 Merger Date for Defined Contribution Plans

6937. Auditing Defined Benefit Plans

.01 General Conditions Requiring an Audit of Pension Plan Financial Statements

6938. Auditing Health and Welfare Plans

.01 When Does a Health and Welfare Plan Require an Audit?

.02 Audit Requirements for Health and Welfare Plans

.03 HIPAA Restrictions

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TIS Section No. Title

.04 Is a Health and Welfare Plan Required to Be Audited if Participants Are Contributing to the Plan?

.05 Audit Requirement When Only Medical Is Funded Through a VEBA Trust

.06 Audit of a Plan When VEBA Trust Is a Pass-Through

.07 When Multiple Plans Use a VEBA Trust, Can the Audit Be Performed at the Trust Level?

.08 Audit Requirement for Health and Welfare Plan Funded Through a 401(h) Account

6939. Auditor’s Report – Employee Benefit Plans

.01 Reserved

.02 Audit Opinion to Be Issued When Discrimination Testing Has Not Been Completed