Pension standards successfully met by GASB.

TLDR:

• The Governmental Accounting Standards Board (GASB) conducted a post-implementation review of its pension standards.
• The review found that the standards achieved their objectives, enhanced financial reporting, and provided decision-useful information.

Key Elements of the Article

The Governmental Accounting Standards Board released a post-implementation review report on its pension standards. The review focused on the effectiveness of Statements No. 67 and 68, which were issued in 2012. The report concluded that the standards met their objectives by providing enhanced accounting and financial reporting for pensions by pension plans and governmental employers.

The GASB report acknowledged some remaining disagreement among stakeholders regarding certain aspects of the standards related to recognition, measurement, and disclosure. Despite this, the board believes that Statements 67 and 68 improved financial reporting, especially through the recognition of the net pension liability and enhanced note disclosures and required supplementary information.

The standards offer a more comprehensive measure of pension expense, allowing users of financial statements to assess a government’s resources and obligations related to pensions. The improvements in financial reporting provide decision-useful information for assessing accountability and interperiod equity.