6.2. SR 06-02-2014 - Laserfiche WebLink

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Future Accounting Standard Changes-Continued How the Changes in This Statement Will Improve Financial Reporting The requirements of this Statement will improve financial reporting primarily through enhanced note disclosures and schedules of required supplementary information that will be presented by the pension plans that are within its scope.The new information will enhance the decision-usefulness of the financial reports of these pension plans,their value for assessing accountability,and their transparency by providing information about measures of net pension liabilities and explanations of how and why those liabilities changed from year to year.The net pension liability information,including ratios,will offer an up-to-date indication of the extent to which the total pension liability is covered by the fiduciary net position of the pension plan.The comparability of the reported information for similar types of pension plans will be improved by the changes related to the attribution method used to determine the total pension liability.The contribution schedule will provide measures to evaluate decisions related to the assessment of contribution rates in comparison to actuarially determined rates,when such rates are determined.In that circumstance,it also will provide information about whether employers and nonemployer contributing entities,if applicable,are keeping pace with actuarially determined contribution measures.In addition,new information about rates of return on pension plan investments will inform financial report users about the effects of market conditions on the pension plan's assets over time and provide information for users to assess the relative success of the pension plan's investment strategy and the relative contribution that investment earnings provide to the pension plan's ability to pay benefits to plan members when they come due. GASB Statement No.68 - The Accounting and Financial Reporting of Pensions-an Amendment of GASB Statement No. 27 The primary objective of this Statement is to improve accounting and financial reporting by state and local governments for pensions.It also improves information provided by state and local governmental employers about financial support for pensions that is provided by other entities.This Statement results from a comprehensive review of the effectiveness of existing standards of accounting and financial reporting for pensions with regard to providing decision-useful information, supporting assessments of accountability and interperiod equity,and creating additional transparency. This Statement replaces the requirements of Statement No.27,Accounting for Pensions by State and Local Governmental Employers,as well as the requirements of Statement No. 50,Pension Disclosures,as they relate to pensions that are provided through pension plans administered as trusts or equivalent arrangements(hereafter jointly referred to as trusts)that meet certain criteria.The requirements of Statements 27 and 50 remain applicable for pensions that are not covered by the scope of this Statement. This Statement is effective for fiscal years beginning after June 15,2014. Earlier application is encouraged. How the Changes in This Statement Will Improve Financial Reporting The requirements of this Statement will improve the decision-usefulness of information in employer and governmental nonemployer contributing entity financial reports and will enhance its value for assessing accountability and interperiod equity by requiring recognition of the entire net pension liability and a more comprehensive measure of pension expense.Decision- usefulness and accountability also will be enhanced through new note disclosures and required supplementary information. GASB Statement No. 71 -Pension Transition for Contributions Made Subsequent to the Measure Date-an Amendment of GASB Statement No. 68 People +Process® Going Beyondthe _6_ Numbers