Valuing and Reporting Plan Investments

As a plan fiduciary, you are subject to certain responsibilities, and with these responsibilities come potential liability. Fiduciaries who do not follow the ERISA standards of conduct may be personally liable to restore any losses to the plan arising from inaccurate estimates of investment values.

Investments are the most significant assets 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. Each of these various investments has unique valuation and disclosure considerations.

The AICPA Employee Benefit Plan Audit Quality Center has prepared this advisory to assist you as a plan sponsor in understanding your responsibilities for valuing and reporting plan investments. This guide 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 related to the financial reporting of investments that plan management may wish to consider.

Download this whitepaper to learn more about valuing and reporting your plan investments.


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