; FAQ 784: FASB / ASC 715 Valuations - Coding for calculations

FAQ 784: FASB / ASC 715 Valuations - Coding for calculations


How do I code the system and run FASB 87 / ASC 715 calculations?


Here is some general guidance for coding the system for FASB 87 / ASC 715 calculations:

1) If you have pre-retirement decrements you will need to answer Method Used for funding of Death, Termination, and/or Disability on the Funding \ FUNDMETH screen. Enter corresponding pre-retirement decrement table(s) in the Assumptions \ FASB screen.

2) There are inputs on the Assumptions \ FASB screen that allow you to project increases in the 415 $ limit and the 401(a)(17) compensation limit.

3) FASB 87 / ASC 715 calculations are done at the same time as funding calculations. If you make any changes in your FASB 87 / ASC 715 assumptions after the regular valuation calculations are run, you must run Calculations > Valuation to refresh those results.

4) ASC handles tiered rates, single rates of interest (including the ability to enter a single rate for pre-retirement and different single rate post-retirement), or yield curves and calculates ABO, PBO, VBO, Service Cost, number expected to receive benefits, and expected future working lifetime.

5) In the Reports > Actuarial > FASB... menu, the Information for the FASB 87 summary report page has not been updated for ASC-715 reporting requirements, but the individual participant pages do show totals for all the calculations mentioned above.

6) Projected payouts may be printed from 2 menus. The Projected Payouts page from the Reports > Actuarial > FASB... menu has limited options available. The Projected Payouts page from the Reports > Actuarial > FASB Projected Payouts... includes several options including an export to file option and the ability to output projected payouts for selected employees or selected status codes. The expected payouts for 100 future years will be shown in both outputs.

7) The ASC system does not perform balance sheet and net periodic pension cost calculations for the accountant's report.