For local governments reporting on a calendar year basis, the time has come to implement GASB Statement No. 68, Accounting and Financial Reporting for Pensions. If you’re feeling uneasy about implementing GASB 68, you’re not alone. This complex standard requires significant changes to the reporting of pension liabilities and pension expense, as well as expanded footnote disclosure and required supplementary schedules. Fortunately, our Government Services Group is here for you. From reviewing your work and offering guidance to full implementation services, we can help ensure your implementation goes smoothly. Our full implementation services include the following:
- Preparing adjusting journal entries needed to:
- restate your financial statements as of the beginning of the year
- record the change in the net pension liability and pension expense for the calendar year 2015 as well as the deferred inflows and outflows as of December 31, 2015. As part of developing the 2015 journal entries, we will devise an allocation to distribute the net pension liability and associated components among your funds and programs
- record the deferred outflows of resources associated with pension contributions made during 2015 (those made subsequent to measurement date) based on guidance provided by GASB Statement No. 71, Pension Transition for Contributions Made Subsequent to the Measurement Date – an amendment of GASB Statement No. 68
- Preparing and providing the necessary changes to the footnote disclosures.
- Developing and providing necessary required supplementary information (RSI) schedules, including the Schedule of the Proportionate Share of the Net Pension Liabilities and the Schedule of the Contributions.
- Preparing revised tables for the Management Discussion and Analysis (MDA) section of the financial statements, as well as suggested wording for insertion into the MDA that addresses the changes required by GASB 68 and GASB 71.
- If needed, we will also assist with explaining the changes to the financial statements to management and members of the governing Board.
- Finally, we will provide you with detailed instructions for accounting for GASB 68 in subsequent years so you and your staff can handle the accounting requirements.
If you have questions about implementing these changes, or if you could benefit from some or all of the implementation services above, contact Kerry Roe or your CSH advisor today.