GASB Makes Fix to Pension Standards | AccountingWEB

GASB Makes Fix to Pension Standards

By Jason Bramwell, Staff Writer
 
The Governmental Accounting Standards Board (GASB) has corrected a potential issue with the transition provisions of accounting standards on pensions for state and local governments.
 
The GASB released Statement No. 71, Pension Transition for Contributions Made Subsequent to the Measurement Date - An Amendment of GASB Statement No. 68, which eliminates a potential source of understatement of restated beginning net position and expense in a government's first year of implementing Statement No. 68, Accounting and Financial Reporting for Pensions.
 
Statement No. 68, which was approved by the GASB on June 25, 2012, revises and establishes new financial reporting requirements for most governments that provide their employees with pension benefits.
 
When a state or local government transitions to the new pension standards, Statement No. 71 requires it to recognize a beginning deferred outflow of resources for its pension contributions made during the time between the measurement date of the beginning net pension liability and the beginning of the initial fiscal year of implementation, according to the GASB. 
 
This amount will be recognized regardless of whether it is practical to determine the beginning amounts of all other deferred outflows of resources and deferred inflows of resources related to pensions.
 
The provisions are effective simultaneously with the provisions of Statement No. 68, which is required to be applied in fiscal years beginning after June 15, 2014.
 
Related articles:
 
Wait, there's more!
There's always more at AccountingWEB. We're an active community of financial professionals and journalists who strive to bring you valuable content every day. If you'd like, let us know your interests and we'll send you a few articles every week either in taxation, practice excellence, or just our most popular stories from that week. It's free to sign up and to be a part of our community.
Premium content is currently locked

Editor's Choice

WHAT KIND OF FIRM ARE YOU?
As part of our continued effort to provide valuable resources and insight to our subscribers, we're conducting this brief survey to learn more about your personal experiences in the accounting profession. We will be giving away five $50 Amazon gift cards, and a $250 Amazon gift card to one lucky participant.
This is strictly for internal use and data will not be sold
or shared with any third parties.