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Future Accounting Standard Changes-Continued <br /> Consequently,if it is not practical to determine the amounts of all deferred outflows of resources and deferred inflows of <br /> resources related to pensions,contributions made after the measurement date of the beginning net pension liability could not have <br /> been reported as deferred outflows of resources at transition. This could have resulted in a significant understatement of an <br /> employer or nonemployer contributing entity's beginning net position and expense in the initial period of implementation. <br /> This Statement amends paragraph 137 of Statement No.68 to require that,at transition,a government recognize a beginning <br /> deferred outflow of resources for its pension contributions,if any,made subsequent to the measurement date of the beginning net <br /> pension liability. Statement No.68,as amended,continues to require that beginning balances for other deferred outflows of <br /> resources and deferred inflows of resources related to pensions be reported at transition only if it is practical to determine all such <br /> amounts. <br /> The provisions of this Statement are required to be applied simultaneously with the provisions of Statement No. 68. <br /> How the Changes in This Statement Will Improve Financial Reporting <br /> The requirements of this Statement will eliminate the source of a potential significant understatement of restated beginning net <br /> position and expense in the first year of implementation of Statement No.68 in the accrual-basis financial statements of <br /> employers and nonemployer contributing entities. This benefit will be achieved without the imposition of significant additional <br /> costs. <br /> (1)Note.From GASB Pronouncements Summaries. Copyright 2014 by the Financial Accounting Foundation,401 Merritt 7, <br /> Norwalk,CT 06856,USA,and is reproduced with permission. <br /> This communication is intended solely for the information and use of the City Council,management and the Minnesota Office of the <br /> State Auditor and is not intended and should not be used by anyone other than those specified parties. <br /> Our audit would not necessarily disclose all weaknesses in the system because it was based on selected tests of the accounting records <br /> and related data. The comments and recommendations in the report are purely constructive in nature,and should be read in this <br /> context. <br /> If you have any questions or wish to discuss any of the items contained in this letter,please feel free to contact us at your convenience. <br /> We wish to thank you for the continued opportunity to be of service and for the courtesy and cooperation extended to us by your staff. <br /> Ly <br /> mom, <br /> ABDO,EICK&MEYERS,LLP <br /> Minneapolis,Minnesota <br /> March 26,2015 <br /> People <br /> +Procjess. <br /> Going <br /> -16- N, umj berrs <br />