NEWS RELEASE 07/02/13
GASB ISSUES PROPOSAL ADDRESSING TRANSITION
ISSUE IN PENSION STANDARDSNorwalk, CT, July 2,
2013—The Governmental Accounting Standards Board (GASB) today issued
for public comment a proposed Statement regarding the transition provisions of
GASB´s new pension standards for state and local governments. The proposal would
eliminate a potential source of understatement of restated beginning net
position and expense in a government´s first year of implementing GASB Statement
No. 68, Accounting
and Financial Reporting for Pensions.
To correct this potential
understatement, the proposed Statement would require a state or local
government, when transitioning to the new pension standards, to recognize a
beginning deferred outflow of resources for its pension contributions made
during the time between the measurement date of the beginning net pension
liability and the beginning of the initial fiscal year of implementation. This
amount would be recognized regardless of whether it is practical to determine
the beginning amounts of all other deferred outflows of resources and deferred
inflows of resources related to pensions.
The provisions would be
effective simultaneously with the provisions of Statement 68, which is required
to be to be applied in fiscal years beginning after June 15, 2014.
Exposure Draft is available on the GASB website, http://www.gasb.org/. Stakeholders are
encouraged to review the proposal and provide comment by August 26, 2013.
About the Governmental Accounting Standards Board
The GASB is the independent, not-for-profit organization formed
in 1984 that establishes and improves financial accounting and reporting
standards for state and local governments. Its seven members are drawn from the
Board´s diverse constituency, including preparers and auditors of government
financial statements, users of those statements, and members of the academic
community. More information about the GASB can be found at its website, http://www.gasb.org/.