GASB issues implementation guide on financial reporting and disclosures by pension …

New Guide for Pension Plans

T he Governmental Accounting Standards Board issued an implementation guide on financial reporting and disclosures by pension plans, postemployment healthcare plans and state and local government employers. The guide is intended to serve as a reference and instructional tool for preparers and attestors who must implement three recently published GASB statements on pension reporting.

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Since the release of Statement no. 25, Financial Reporting for Defined Benefit Plans and Note Disclosures for Defined Contribution Plans, Statement no. 26, Financial Reporting for Postemployment Healthcare Plans Administered by Defined Benefit Pension Plans, and Statement no. 27, Accounting for Pensions by State and Local Governmental Employers, the GASB has received many questions regarding their application in various plan and employer reporting situations. Penny Wardlow, GASB project manager, told the Journal that CPAs who are trying to put any of the three statements into effect are likely to have questions. “Most of the basic questions are covered in this implementation guide,” said Wardlow.

The pension guide includes 166 questions and answers derived from technical inquiries and the GASB advisory committee and staff. Topic areas discussed include

• How (including what value) to report investments and net investment income in the financial statements of defined benefit pension plans.
• How to treat employer contributions made from the proceeds of pension obligation bonds in financial reporting by plans and empoyers.
• How to measure and recognize an employers pension liabilities and assets at transition.
• What financial reporting and disclosure requirements employers should follow in special funding situations.

The implementation guide also includes an index and complete copies of GASB Statements nos. 25, 26 and 27. Copies can be ordered for $22.50 from the GASB order department at 203-847-0700, ext. 555.