Employee Benefit Plan Publications

Valuing and Reporting Plan Investments – Plan Advisory

The AICPA® Employee Benefit Plan Audit Quality Center (EBPAQC) has prepared this advisory to assist you as a plan sponsor in understanding your responsibilities for valuing and reporting plan investments.

This advisory discusses:

  • Your responsibility for reporting plan investments
  • How plan investments are reported
  • Investment valuation and related disclosures
  • Your responsibility for valuing investments and establishing internal controls
  • Special considerations for alternative investments
  • Investment information you should request from the plan trustee or custodian and investment manager
  • How your independent auditor can assist you
  • Where to obtain additional information

This advisory also includes examples of suggested controls that plan management may wish to consider related to the financial reporting of investments. Investments are the most significant asset in a benefit plan. Plan investments often consist of marketable securities, such as common or preferred stocks, bonds, notes, or shares of registered investment companies. Other plan investments may include so-called alternative investments, which are not readily marketable. These investments include private investment funds, such as hedge funds, private equity funds, real estate funds, venture capital funds, commodity funds, offshore fund vehicles and funds of funds, as well as bank collective investment funds. Each of these different investments has unique valuation and disclosure considerations.