GASB 74/75: Postemployment Benefits Reporting
The Governmental Accounting Standards Board has issued two new accounting standards that significantly change the way Other Postemployment Benefits are reported:
- Statement No. 74, Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans, is effective for fiscal year 2016-17.
- Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions, is effective for plan employers in fiscal year 2017-18.
GASB 74 and 75 reflect a fundamental overhaul in the standards for accounting and financial reporting for postemployment benefits other than pension. These standards break the link between funding and financial reporting by moving from an approach that focuses on the process by which employers finance their future projected cash outflows for OPEB, to one that stresses the obligation an employer incurs through the employment-exchange process.
For more information on GASB 74 and 75, see below: