Statement No. 73 Accounting and Financial Reporting for Pensions and Related Assets That Are Not within the Scope of GASB Statement 68, and Amendments to Certain Provisions of GASB Statements 67 and 68
GASB Statement 73 is for accounting and financial reporting for pensions not within the scope of GASB Statement 68. This is effective for employer fiscal years beginning after June 15, 2016. GASB 73 applies to pension plans (both defined benefit and defined contribution). It applies to plans which either do not have any dedicated assets associated with them or have assets that are not in a trust meeting certain requirements.
With no assets in an irrevocable trust, the entire total pension liability is shown on the employer’s balance sheet under GASB 73. Implementation of GASB 73 will result in required enhancements to financial statement disclosures by establishing a single framework for the presentation of information about pensions. This will enhance the comparability of pension-related information reported by employer and non-employer contributing entities.