Final answer:
The statement is false. Valuation of employer's securities in stock bonus plans is required annually, not just when the plan is created, to meet IRS and DOL requirements.
Step-by-step explanation:
The statement, "A valuation of an employer's securities is performed only at the creation of the stock bonus plan," is false. Valuations of an employer's securities might need to be conducted on a regular basis, not just at the creation of the stock bonus plan. For most stock bonus plans, especially those that are part of Employee Stock Ownership Plans (ESOPs), the Internal Revenue Service (IRS) and Department of Labor (DOL) require that employer securities be valued at least once a year to ensure that the stock bonus plan reflects the accurate market value of the securities. This annual valuation is necessary to protect the interests of the participants in the plan and to maintain the compliance with regulatory requirements.