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Future Accounting Standard Changes-Continued <br /> Summary <br /> The objective of this Statement is to address an issue regarding application of the transition provisions of Statement No.68, <br /> Accounting and Financial Reporting for Pensions. The issue relates to amounts associated with contributions,if any,made by a <br /> state or local government employer or nonemployer contributing entity to a defined benefit pension plan after the measurement <br /> date of the government's beginning net pension liability. <br /> Statement No.68 requires a state or local government employer(or nonemployer contributing entity in a special funding <br /> situation)to recognize a net pension liability measured as of a date(the measurement date)no earlier than the end of its prior <br /> fiscal year.If a state or local government employer or nonemployer contributing entity makes a contribution to a defined benefit <br /> pension plan between the measurement date of the reported net pension liability and the end of the government's reporting period, <br /> Statement No.68 requires that the government recognize its contribution as a deferred outflow of resources.In addition, <br /> Statement No.68 requires recognition of deferred outflows of resources and deferred inflows of resources for changes in the net <br /> pension liability of a state or local government employer or nonemployer contributing entity that arise from other types of events. <br /> At transition to Statement No.68,if it is not practical for an employer or nonemployer contributing entity to determine the <br /> amounts of all deferred outflows of resources and deferred inflows of resources related to pensions,paragraph 137 of Statement <br /> No.68 required that beginning balances for deferred outflows of resources and deferred inflows of resources not be reported. <br /> Consequently,if it is not practical to determine the amounts of all deferred outflows of resources and deferred inflows of <br /> resources related to pensions, contributions made after the measurement date of the beginning net pension liability could not have <br /> been reported as deferred outflows of resources at transition.This could have resulted in a significant understatement of an <br /> employer or nonemployer contributing entity's beginning net position and expense in the initial period of implementation. <br /> This Statement amends paragraph 137 of Statement No.68 to require that,at transition,a government recognize a beginning <br /> deferred outflow of resources for its pension contributions,if any,made subsequent to the measurement date of the beginning net <br /> pension liability. Statement No.68,as amended,continues to require that beginning balances for other deferred outflows of <br /> resources and deferred inflows of resources related to pensions be reported at transition only if it is practical to determine all such <br /> amounts. <br /> The provisions of this Statement are required to be applied simultaneously with the provisions of Statement No.68. <br /> How the Changes in This Statement Will Improve Financial Reporting <br /> The requirements of this Statement will eliminate the source of a potential significant understatement of restated beginning net <br /> position and expense in the first year of implementation of Statement No.68 in the accrual-basis financial statements of <br /> employers and nonemployer contributing entities.This benefit will be achieved without the imposition of significant additional <br /> costs. <br /> 1 Note.From GASB Pronouncements Summaries.Copyright 2014 by the Financial Accounting Foundation,401 Merritt 7, <br /> Norwalk,CT 06856,USA,and is reproduced with permission. <br /> People <br /> +Process® <br /> Going <br /> Beyondthe <br /> _7_ Numbers <br />