WASHINGTON – The Governmental Accounting Standards Board has proposed transition provisions for its new pension accounting and reporting standards for state and local governments and is seeking public comments on them.
The proposed provisions would eliminate a potential source of understatement of restated beginning net position and expense in a government’s first year of implementing GASB’s new accounting and financial reporting for pensions in its Statement No. 68. The GASB statement establishes new financial reporting requirements for most governments that provide their employees with pension benefits through these types of plans. It will require state and local governments with defined benefit pension plans to disclose net pension liabilities on their balance sheets.