What is a GASB 68?
GASB, Financial Accounting Standards Board. 68, Accounting and Financial Reporting for Pensions, revises and establishes new financial reporting requirements for most state and local governments that provide their employees with pension benefits.
What is the difference between GASB 67 and 68?
While GASB 67 eliminated the practice of asset smoothing in the reporting of pension assets, GASB 68 permits governments to continue a form of it. Governments are permitted to defer the recognition of the difference between the return expected on plan assets and the actual return.
When was GASB 68 effective?
June 15, 2014
Effective Date: The provisions of Statement 68 are effective for fiscal years beginning after June 15, 2014. Earlier application is encouraged.
What is net pension liability?
The net pension liability is the difference between the total pension liability (the present value of projected benefit payments to employees based on their past service) and the assets (mostly investments reported at fair value) set aside in a trust and restricted to paying benefits to current employees, retirees, and …
How is pension expense calculated?
To calculate a pension expense, the employer must report the service and interest cost, expected return on plan assets, amortization of prior service cost and effects of gains and losses.
When was GASB 67 effective?
June 15, 2013
The Governmental Accounting Standards Board issued Statement No. 67 (GASB 67), “Financial Reporting for Pension Plans”, in June 2012. GASB 67’s effective date is for plan years beginning after June 15, 2013.
What is the difference between GASB 45 and GASB 75?
GASB 45 recognizes the liability within a footnote of the financial statements, with only a portion of the total liability going on the book through the Net OPEB Obligation. GASB 75 does away with the Net OPEB Obligation, requiring the full liability to be recognized immediately on the balance sheet.
Who does GASB report to?
The GASB is subject to oversight by the Financial Accounting Foundation (FAF) Board of Trustees, which selects its board members, and the FASB, both of which it funds.
How do I calculate pension liabilities?
The quick and easy calculation for pension liability is found using this formula: Pension assets minus pension obligations equals pension liability.
When does GASB Statement 68 go into effect?
Note: Statement 68 applies only to pension benefits and does not apply to Other Postemployment Benefits (OPEB) or TRS-Care related liabilities. The GASB 68 schedules that will be used for financial reporting for fiscal year 2021 have a measurement date of Aug. 31, 2020.
When did TRS issue GASB Statement No.67?
Statement No. 67 was issued in June 2012 and became effective for plan financial statements for fiscal years beginning after June 15, 2013. TRS implemented GASB 67 with the 2014 Annual Comprehensive Financial Report (see “Financial Reports” section of the Publication page on the TRS website to view the ACFR).
What are the tabs on the GaSb file?
On various tabs in the file are the: State Auditor’s opinion, Schedule of Employer’s Proportionate Shares (Allocations), Schedule of Pension Amounts by Employer and the related Notes to the Schedules. The following schedules were not audited but provide detailed information that ties to the audited schedule.
How does GaSb work for the state of Texas?
A Schedule of On-Behalf Contributions is provided which shows amounts to be recognized as grant revenue for each fiscal year for the amounts paid by the State of Texas as the non-employer contributing entity. This accounting treatment will be similar to that used for the Medicare on-Behalf payments for GASB 24 for public and charter schools.