True or False: The accounting prescribed for IRC Section 457 deferred compensation plans is also suitable for other types of deferred compensation plans.

The assertion is true because the accounting standards set forth for IRC Section 457 deferred compensation plans are designed to ensure transparency and accountability in the management of deferred compensation. These standards emphasize the importance of recognizing the revenue and expenses associated with these plans, which can be applied to other types of deferred compensation plans as well.

The general principles of accounting that govern IRC Section 457 plans focus on how funds are intended to be used, how these funds should be reported in financial statements, and how to manage the obligations associated with these deferred compensations. The thought process behind the accounting treatment takes into consideration the need for accurate financial reporting and compliance with relevant regulations, which are common across various types of deferred compensation arrangements.

Consequently, while the specific rules and regulations may vary for different types of deferred compensation plans, the foundational accounting principles established by IRC Section 457 are applicable to other deferred compensation plans, thereby supporting the assertion that this accounting is suitable for use beyond just 457 plans.