Prior to Statement no. 55, the GAAP hierarchy was contained in Statement on Auditing Standards (SAS) no. 69, The Meaning of Present Fairly in Conformity With Generally Accepted Accounting Principles, rather than in GASB’s authoritative literature. Statement no. 55 incorporates relevant portions of SAS no. 69 into the GASB literature without substantive change. Statement no. 55 is effective immediately.
To order a copy of the statement, go to www.gasb.org.
GASB also issued an Invitation to Comment (ITC) on Pension Accounting and Financial Reporting to obtain feedback for a re-examination of pension accounting and financial reporting standards. The ITC addresses key issues related to pension accounting and financial reporting including the process on which pension accounting and financial reporting should focus; recognition of liabilities and expenses; measurement of unfunded pension obligations; the use of actuarial methods; and reporting by government employers in cost-sharing multiple-employer pension plans and reporting by pension plans themselves.
Comments are requested by July 31. A public hearing on the ITC is scheduled for GASB’s regular meeting on Aug. 26 at 8:30 a.m. The ITC is available at www.gasb.org.