WASHINGTON — The Governmental Accounting Standards Board unveiled a pension accounting and reporting proposal Friday that would fundamentally alter how cash-strapped states and localities report pension liabilities and pose challenges for them.

The so-called exposure drafts would, for the first time, require state and local governments to report unfunded pension liabilities on their balance sheets, creating "sticker shock" and potentially raising concerns from politicians, rating agencies, and others about how the liabilities will be funded in the future.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.