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:
 

You may like these other stories...

BKD LLP adds Illinois accounting firm Wolf & Co.Springfield, Missouri-based CPA and advisory firm BKD LLP and Chicago-based accounting firm Wolf & Co. have agreed to merge, the firms announced on Monday. Wolf will...
Ernst & Young fiscal-year revenue rises 6% to $27.4 billionMichael Rapoport of the Wall Street Journal reported late Thursday that Ernst & Young's (EY) global revenue was $27.4 billion in its latest fiscal year,...
TIGTA recommends improvements to selection of problematic paid preparers for further enforcement actionsThe IRS could improve its selection of problematic paid tax return preparers for further enforcement actions, according...

Already a member? log in here.

Upcoming CPE Webinars

Oct 9In this jam-packed presentation Excel expert David Ringstrom, CPA will give you a crash-course in creating spreadsheet-based dashboards.
Oct 15This webinar presents the requirements of AU-C 600, Audits of Group Financial Statements (Including the Work of Component Auditors).
Oct 21Kristen Rampe will share how to speak and write more effectively by understanding your own and your audience’s communication style.
Oct 23Amber Setter will show the value of leadership assessments as tools for individual and organizational leadership development initiatives.