Implementing GASB 74 & 75 is right around the corner. Although not applicable until 2017 and 2018 respectively these standards require significant planning to help ensure timely implementation. Now is the time to speak to your Auditors and Actuaries about upcoming Other Post Employment Benefit (OPEB) valuations.
GASB has taken the position that OPEB is a form of compensation and the liability/expense should be recognized while the employee provides service to the Government. GASB statements 74 & 75 replace statements 43 & 45, and along with other regulations require the full Net OPEB liability and related expenses to be presented on the government’s accrued basis financial statements. Previously, the liability was determined based on whether a government funded the annual required contribution.
Details of these two standards can be found in the PowerPoint presentation available below and also through the following link (GASB 74-75 PowerPoint). For additional information on GASB 74 & 75 (click here).
Scott McIntire, CPA and Shareholder at Melanson Heath was a guest speaker at the Annual Emerging Issues Forum of the Public Employees Retirement Administration Commission (PERAC). Scott’s presentation demonstrated the real impact and collaboration that will be required in order to successfully meet the requirements of GASB 74 & 75.
If you have questions please contact:
Scott McIntire, CPA, Shareholder of Melanson Heath
Email firstname.lastname@example.org or Phone: 800-282-2440.