• Register
Return to: Home > News > Regulation > US GASB approves public pension reporting standards

US GASB approves public pension reporting standards

The US Governmental Accounting Standards Board (GASB) has approved two standards for the reporting of unfunded pension liabilities by US state and local governments that provide defined benefit pensions.

In statement No. 67, Financial Reporting for Pension Plans, the GASB has revised existing guidance for the financial reports of most pension plans. In Statement No. 68, Accounting and Financial Reporting for Pensions, the standard setter amends financial reporting requirements for governments that provide their employees with pension benefits.

The GASB explained that governments will have to disclose a “net pension liability” on their balance sheets, meaning recognition of more pension expense than is currently required. This includes annual service cost and interest on the pension liability, plus the effect of changes in benefit terms on the net pension liability.

GASB chairman Robert Attmore said the standards will improve the way state and local governments report their pension liabilities and expenses, resulting in a more faithful representation of the full impact of these obligations.

“Among other improvements, net pension liabilities will be reported on the balance sheet, providing citizens and other users of these financial reports with a clearer picture of the size and nature of the financial obligations to current and former employees for past services rendered,” Attmore said.

 

Top Content

    Addressing tax challenges and the digitisation of the economy

    As the economy becomes even more globalised through digital sources, the tax systems currently in place need to be scrutinised to examine whether they are still fit for current and emerging business models. Joe Pickard reports on the OECD’s approach to this issue.

    read more

    Primary financial statements: a game changer in reporting?

    International Accounting Standards Board chair Hans Hoogervorst delivered a speech at the Seminario International sobre NIIF y NIF, organised by the Consejo Mexicano de Normas de Información Financiera in Mexico. The Accountant presents the highlights.

    read more

    FASB readies standards for the netflix generation

    The US Financial Accounting Standards Board (FASB) has updated its accounting standard for entertainment, with a specific eye on keeping up to date with how episodic content, such as television programmes, is consumed in the modern world. Jonathan Minter reports.

    read more

    Brexit: why it takes two to tango

    Former TA editor Vincent Huck, now editor of Insurance Asset Risk, looks at why Brexit might unleash geopolitical intrigue in Europe’s accounting standard-setting scene – and why IFRS 17 will be an incredible source of opportunity for firms in the coming years.

    read more
Privacy Policy

We have updated our privacy policy. In the latest update it explains what cookies are and how we use them on our site. To learn more about cookies and their benefits, please view our privacy policy. Please be aware that parts of this site will not function correctly if you disable cookies. By continuing to use this site, you consent to our use of cookies in accordance with our privacy policy unless you have disabled them.