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| Posted on: Monday, January 30, 2006 |
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Accounting for Postemployment Benefits is required by the Government Accounting Standards Board (GASB) as early as Fiscal Years beginning after 12/15/06. The new standards are to be implemented by employers in three phases based on a government’s total annual revenues in the first fiscal year ending after June 15, 1999:
Total Annual Revenues Periods beginning after the following dates:
Phase 1 $100,000,000 or more............................12/15/06
Phase 2 $10,000,000 - $100,000,000.................12/15/07
Phase 3 Less than $10,000,000 .........................12/15/08
Accounting for financial liabilities implicit in postemployment benefits such as, but not limited to, retiree Medical benefits will be required to be actuarially projected and noted in financial disclosures. A lengthy summary of these requirements is available from GASB
This reporting is similar to that required a number of years ago of corporations under FASB which prompted many organizations to evaluate their ability to sustain current retiree benefit commitments. As a result, some reaffirmed their willingness to continue benefits and fund accordingly while others curtailed or eliminated benefits.
Should you have any additional employee benefit questions or would like to discuss this material in detail, please don’t hesitate to call the Denman Team. |
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