CECL & EBP Audits: Application to DC Plan Contributions Receivable

Last month at the AICPA Employee Benefit Plans Conference (EBP Conference) a number of presentations addressed audience questions about the applicability of FASB Accounting Standards Codification (FASB ASC) 326, Financial Instruments—Credit Losses,to employer and employee contributions receivable in a defined contribution (DC) plan. The questions indicate some level of uncertainty about the applicability of current expected credit losses (CECL) to DC plan contributions receivable but also regarding the degree of audit attention that should be paid to these contributions receivable.