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Future Accounting Standard Changes-Continued <br /> Presentation of Payroll-Related Measures in Required Supplementary Information <br /> Prior to the issuance of this Statement,Statements 67 and 68 required presentation of covered-employee payroll,which is the <br /> payroll of employees that are provided with pensions through the pension plan,and ratios that use that measure,in schedules of <br /> required supplementary information.This Statement amends Statements 67 and 68 to instead require the presentation of covered <br /> payroll,defined as the payroll on which contributions to a pension plan are based,and ratios that use that measure. <br /> Selection of Assumptions <br /> This Statement clarifies that a deviation,as the term is used in Actuarial Standards of Practice issued by the Actuarial Standards <br /> Board,from the guidance in an Actuarial Standard of Practice is not considered to be in conformity with the requirements of <br /> Statement 67,Statement 68,or Statement 73 for the selection of assumptions used in determining the total pension liability and <br /> related measures. <br /> Classification of Employer-Paid Member Contributions <br /> This Statement clarifies that payments that are made by an employer to satisfy contribution requirements that are identified by the <br /> pension plan terms as plan member contribution requirements should be classified as plan member contributions for purposes of <br /> Statement 67 and as employee contributions for purposes of Statement 68.It also requires that an employer's expense and <br /> expenditures for those amounts be recognized in the period for which the contribution is assessed and classified in the same <br /> manner as the employer classifies similar compensation other than pensions(for example,as salaries and wages or as fringe <br /> benefits). <br /> Effective Date <br /> The requirements of this Statement are effective for reporting periods beginning after June 15,2016,except for the requirements <br /> of this Statement for the selection of assumptions in a circumstance in which an employer's pension liability is measured as of a <br /> date other than the employer's most recent fiscal year-end.In that circumstance,the requirements for the selection of assumptions <br /> are effective for that employer in the first reporting period in which the measurement date of the pension liability is on or after <br /> June 15,2017.Earlier application is encouraged. <br /> How the Changes in This Statement Will Improve Financial Reporting <br /> The requirements of this Statement will improve financial reporting by enhancing consistency in the application of financial <br /> reporting requirements to certain pension issues. <br /> People <br /> +Process. <br /> Going <br /> Beyond the <br /> -12- Natilbers <br /> 78 <br />