GASB moves toward relief

The proposal would aid certain governments with pension accounting.

GASB is moving to provide relief to certain governments with multiple-employer defined benefit pension plans that have struggled to comply with the board's new pension standards for state and local governments.

Some governments whose employees receive pension benefits through multiple-employer pension plans have found it challenging or impossible to obtain certain measurements and data points needed to comply with the requirements of GASB Statement No. 68, Accounting and Financial Reporting for Pensions.

GASB issued a proposal in response to these concerns. In the exposure draft, Accounting and Financial Reporting for Pensions Provided Through Certain Multiple-Employer Defined Benefit Pension Plans, GASB proposes to assist these governments.

The proposal would focus employer accounting and financial reporting requirements for pensions on information that is obtainable for those governments. The proposal would establish separate standards for employers that participate in pension plans that meet the criteria presented in the proposal.

Under the proposal, these employers would have separate standards for:

  • Note disclosures of descriptive information about the plan.
  • Benefit terms.
  • Contribution terms.
  • Required supplementary information presenting required contribution amounts for the past 10 fiscal years.

The proposed guidance would apply to governments that participate in certain private or federally sponsored multiple-employer defined benefit pension plans, such as Taft-Hartley plans or plans with similar characteristics.

SPONSORED REPORT

Revenue recognition: A complex effort

Implementing the new standard requires careful judgment. Learn how to make significant accounting judgments and document them and collaborate with peers for consistent application.

VIDEO

How to Excel pivot a general ledger

The general ledger is a vast historical data archive of your company's financial activities, including revenue, expenses, adjustments, and account balances. J. Carlton Collins, CPA, shows how to prepare data for, and mine data with, PivotTables.

QUIZ

News quiz: Taking an economic snapshot and looking to the future

Recent news included IRS actions that affect individuals and partnerships and a possibly influential move by a Big Four accounting firm.Take this short quiz to see how much you know about the news.