Laserfiche WebLink
This statement will improve financial reporting primarily through enhanced note disclosures and <br /> schedules of RSI that will be presented by OPEB plans administered through trusts meeting the specified <br /> criteria. The new information will enhance the decision-usefulness of the financial reports of those OPEB <br /> plans, their value for assessing accountability, and their transparency by providing information about <br /> measures of net OPEB liabilities and explanations of how and why those liabilities changed from <br /> year-to-year. The net OPEB liability information, including ratios, will offer an up-to-date indication of <br /> the extent to which the total OPEB liability is covered by the fiduciary net position of the OPEB plan. <br /> The comparability of the reported information for similar types of OPEB plans will be improved by the <br /> changes related to the attribution method used to determine the total OPEB liability. The contribution <br /> schedule will provide measures to evaluate decisions related to the assessment of contribution rates in <br /> comparison with actuarially determined rates, if such rates are determined. In addition, new information <br /> about rates of return on OPEB plan investments will inform financial report users about the effects of <br /> market conditions on the OPEB plan's assets over time and provide information for users to assess the <br /> relative success of the OPEB plan's investment strategy and the relative contribution that investment <br /> earnings provide to the OPEB plan's ability to pay benefits to plan members when they come due. <br /> This statement is effective for financial statements for fiscal years beginning after June 15, 2016. Earlier <br /> application is encouraged. <br /> GASB STATEMENT No.75,ACCOUNTING AND FINANCIAL REPORTING FOR POSTEMPLOYMENT <br /> BENEFITS OTHER THANPENSIONS <br /> The primary objective of this statement is to improve accounting and financial reporting by state and local <br /> governments for post-employment benefits other than pensions (OPEB). It also improves information <br /> provided by state and local governmental employers about financial support for OPEB that is provided by <br /> other entities. This statement replaces the requirements of GASB Statement Nos. 45 and 57. GASB <br /> Statement No. 74 establishes new accounting and financial reporting requirements for OPEB plans. <br /> This statement establishes standards for recognizing and measuring liabilities, deferred outflows of <br /> resources, deferred inflows of resources, and expense/expenditures. For defined benefit OPEB, this <br /> statement identifies the methods and assumptions that are required to be used to project benefit payments, <br /> discount projected benefit payments to their actuarial present value, and attribute that present value to <br /> periods of employee service. Note disclosure and RSI requirements about defined benefit OPEB also are <br /> addressed. This statement is effective for fiscal years beginning after June 15, 2017. Earlier application is <br /> encouraged. <br /> Similar to changes implemented for pensions, this statement requires the liability of employers and <br /> nonemployer contributing entities to employees for defined benefit OPEB (net OPEB liability) to be <br /> measured as the portion of the present value of projected benefit payments to be provided to current <br /> active and inactive employees that is attributed to those employees' past periods of service (total OPEB <br /> liability),less the amount of the OPEB plan's fiduciary net position. <br /> GASB STATEMENT NO.77, TAXABATEMENTDISCLOSURES <br /> This statement requires disclosure of tax abatement information about (1) a reporting government's own <br /> tax abatement agreements, and (2) those that are entered into by other governments and that reduce the <br /> reporting government's tax revenues. Tax abatements are widely used by state and local governments, <br /> particularly to encourage economic development. For financial reporting purposes, this statement defines <br /> a tax abatement as resulting from an agreement between a government and an individual or entity in <br /> which the government promises to forgo tax revenues and the individual or entity promises to <br /> subsequently take a specific action that contributes to economic development or otherwise benefits the <br /> government or its citizens. <br /> -20- <br />