The Governmental Accounting Standards Board (GASB) proposed an implementation guide for state and local governments on July 25 that contains answers to questions related to the accounting and financial reporting for post-employment benefits other than pensions, also referred to as other post-employment benefits (OPEB).
OPEB are benefits that employers provide to their retired employees. These benefits principally involve healthcare benefits, but also may include life insurance, disability, legal, and other services when those benefits are provided separately from a pension plan.
Stakeholders are asked to review the exposure draft, Implementation Guide No. 201X-Z, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions (and Certain Issues Related to OPEB Plan Reporting), and submit comments to [email protected] by Sept. 25.
The proposal would provide guidance that clarifies, explains, or elaborates on the requirements of GASB Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions, which the GASB issued in June 2015.
The proposed implementation guide also addresses a limited number of issues related to Statement No. 74, Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans, which also was released in June 2015.
The questions and answers contained in GASB implementation guides constitute Category B authoritative guidance under GAAP. The guidance is applicable to all state and local governments that follow GAAP when preparing their financial statements.