Governmental Accounting Standards Board (GASB) Statement No 68., Accounting and Financial Reporting for Pensions, will have a material impact on the financial statements of New Jersey School Districts, Colleges and Authorities for their fiscal year ending on June 30, 2015.
The primary objective of GASB Statement No. 68 is to improve accounting and financial reporting by state and local governments for pensions. It also improves information provided by state and local governmental employers about financial support for pensions that is provided by other entities.
For most entities, the most comprehensive implementation issue will be with the Defined Benefit Cost-Sharing Multiple-Employer Pension Plans; Public Employees Retirement System (PERS) and Teachers’ Pension and Annuity Fund (TPAF). Under GASB Statement No.68, School Districts, Colleges and Authorities will be required to report their proportionate share of the pension plans Net Pension Liability, Deferred Outflow of Resources, Deferred Inflows of Resources and Pension Expense. In addition, there will be more comprehensive footnote disclosures and required supplementary information which will need to be reported.
This represents only a highlight of what is to come with implementing GASB Statement No. 68.