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Emerging Pension Issues Logo aicpa

  GAQC |   Free |   AICPA |   Nov 2015 |

With the implementation of Governmental Accounting Standards Board (GASB) Statement No. 68, Accounting and Financial Reporting for Pensions, the AICPA has received a number of inquiries. This article was prepared by the AICPA State and Local Government Expert Panel (SLGEP) and includes a summary of the more significant issues that have been raised and related discussion for plan auditors and employer auditors to consider. Issues addressed in this article include:

  • Implementation issues for cost-sharing employers: Calculating a change in proportion and audit evidence on beginning net pension liability;
  • Effect of employer-paid member contributions on plans and employers;
  • Additional illustrative schedule of pension amounts by employer for cost-sharing plans;
  • Employer’s presentation of net position;
  • Allocation of pension amounts to funds and departments; and
  • Audit evidence on intra-entity allocations.

The following sections reflect the related discussions of the SLGEP and are intended to build awareness and assist auditors in recognizing and addressing these issues.

Topics covered:
  • Governmental auditing: Technical: Government financial statement audit: Pensions and OPEB, Intermediate