5.3. ERMUSR 04-12-2016 - Laserfiche WebLink

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Future Accounting Standard Changes-Continued Effective Date and Transition The requirements of this Statement that address accounting and financial reporting by employers and governmental nonemployer contributing entities for pensions that are not within the scope of Statement 68 are effective for financial statements for fiscal years beginning after June 15,2016,and the requirements of this Statement that address financial reporting for assets accumulated for purposes of providing those pensions are effective for fiscal years beginning after June 15,2015.The requirements of this Statement for pension plans that are within the scope of Statement 67 or for pensions that are within the scope of Statement 68 are effective for fiscal years beginning after June 15,2015.Earlier application is encouraged. How the Changes in This Statement Will Improve Financial Reporting The requirements of this Statement will improve financial reporting by establishing a single framework for the presentation of information about pensions,which will enhance the comparability of pension-related information reported by employers and nonemployer contributing entities. GASB Statement No.74 - Financial Reporting for Postemployment Benefit Plans Other than Pension Plans Summary The objective of this Statement is to improve the usefulness of information about postemployment benefits other than pensions (other postemployment benefits or OPEB)included in the general purpose external financial reports of state and local governmental OPEB plans for making decisions and assessing accountability.This Statement results from a comprehensive review of the effectiveness of existing standards of accounting and financial reporting for all postemployment benefits(pensions and OPEB)with regard to providing decision-useful information,supporting assessments of accountability and interperiod equity, and creating additional transparency. This Statement replaces Statements No.43,Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans,as amended,and No. 57,OPEB Measurements by Agent Employers and Agent Multiple-Employer Plans. It also includes requirements for defined contribution OPEB plans that replace the requirements for those OPEB plans in Statement No.25, Financial Reporting for Defined Benefit Pension Plans and Note Disclosures for Defined Contribution Plans,as amended, Statement 43,and Statement No. 50,Pension Disclosures. Statement No. 75,Accounting and Financial Reporting for Postemployment Benefits Other than Pensions,establishes new accounting and financial reporting requirements for governments whose employees are provided with OPEB,as well as for certain nonemployer governments that have a legal obligation to provide financial support for OPEB provided to the employees of other entities. The scope of this Statement includes OPEB plans-defined benefit and defined contribution-administered through trusts that meet the following criteria: • Contributions from employers and nonemployer contributing entities to the OPEB plan and earnings on those contributions are irrevocable. • OPEB plan assets are dedicated to providing OPEB to plan members in accordance with the benefit terms. • OPEB plan assets are legally protected from the creditors of employers,nonemployer contributing entities,and the OPEB plan administrator.If the plan is a defined benefit OPEB plan,plan assets also are legally protected from creditors of the plan members. This Statement also includes requirements to address financial reporting for assets accumulated for purposes of providing defined benefit OPEB through OPEB plans that are not administered through trusts that meet the specified criteria. Effective Date and Transition This Statement is effective for financial statements for fiscal years beginning after June 15,2016. Earlier application is encouraged. People +I)rocess. 11111 t)f'I'ti 168