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Future Accounting Standard Changes <br /> The following Governmental Accounting Standards Board(GASB)Statements have been issued and may have an impact on future <br /> Utility financial statements:(t) <br /> GASB Statement No.68-The Accounting and Financial Reporting of Pensions-an Amendment of GASB Statement No. 27 <br /> The primary objective of this Statement is to improve accounting and financial reporting by state and local governments for <br /> pensions.It also improves information provided by state and local governmental employers about financial support for pensions <br /> that is provided by other entities.This Statement results from a comprehensive review of the effectiveness of existing standards of <br /> accounting and financial reporting for pensions with regard to providing decision-useful information,supporting assessments of <br /> accountability and interperiod equity,and creating additional transparency. <br /> This Statement replaces the requirements of Statement No.27,Accounting for Pensions by State and Local Governmental <br /> Employers,as well as the requirements of Statement No. 50,Pension Disclosures,as they relate to pensions that are provided <br /> through pension plans administered as trusts or equivalent arrangements(hereafter jointly referred to as trusts)that meet certain <br /> criteria.The requirements of Statements 27 and 50 remain applicable for pensions that are not covered by the scope of this <br /> Statement. <br /> This Statement is effective for fiscal years beginning after June 15,2014.Earlier application is encouraged. <br /> How the Changes in This Statement Will Improve Financial Reporting <br /> The requirements of this Statement will improve the decision-usefulness of information in employer and governmental <br /> nonemployer contributing entity financial reports and will enhance its value for assessing accountability and interperiod equity by <br /> requiring recognition of the entire net pension liability and a more comprehensive measure of pension expense.Decision- <br /> usefulness and accountability also will be enhanced through new note disclosures and required supplementary information. <br /> GASB Statement No.71-Pension Transition for Contributions Made Subsequent to the Measure Date-an Amendment of <br /> GASB Statement No. 68 <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 <br /> outflows of resources and deferred inflows of resources related to pensions be reported at transition only if it is <br /> practical to determine all such amounts. People <br /> +Process® <br /> The provisions of this Statement are required to be applied simultaneously with the provisions of Statement <br /> No.68. Going <br /> Beyondthe <br /> Numbers <br /> 118 <br />