Hybrid Retirement Plan Accounting Subject of US Board Analysis

US accounting rule writers will study how companies should account for an emerging type of hybrid retirement plan in their financial reports.

The Financial Accounting Standards Board voted unanimously Wednesday to add a project to its technical agenda focused on companies’ financial reporting for market-return cash balance plans. While these plans are economically similar to 401(k) plans, they can offer increased funding flexibility and higher contribution limits than traditional retirement accounts.

FASB’s forthcoming draft plan will ask for public input within a 60-day comment period on the project’s proposed details and tailored scope.

Cash balance plans are growing in use, ...