2018-06-13 CC Packet - Laserfiche WebLink

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Future Accounting Standard Changes The following Governmental Accounting Standards Board (GASB)Statements have been issued and may have an impact on future City financial statements:(1) GASH Statement No.75 - Accounting and Financial Reporting for Postemploft ment Benefit Plans Other then Pension Summary The primary objective of this Statement is to improve accounting one tin ancial reporting by state and local governments fors tempIcy ment benefits other than pensions(other postemployment benefits or OPES). It also improves inion-nation provided by state and local governmental employers about financial support for OPER that is provided by other entities. This Statement results from a comprehensive review of the effectiveness of existing standards of accounting and financial reporting for allpostemployment benefits(pensions and OPEB)with regard to providing decision-useful information, supporting assessments of accountability and interperiod equity, and creating additional transparency. This Statement replaces the requirements of Statements No. 45,Accounting and Financial Reporting by Employers for Postion pto Benefits Other than Pensions, as amended,and No. 57, OPEB Masan rem ants by Agent Em players a no Agent Multiple-Employer Plans,for APES. Statement No. 74, Financial Reporting for Prite mployment Benefit Plans Other than Pension Plans,establishes new accounting and financial reporting requirements for OPER plans. The scope of this Statement addresses accounting and financial reporting for OPEB that is provided to the employees of state and local governmental employers.This Statement establishes standards for recognizing and measuring liabilities, deferred outflows of resources. deferred inflows of resources, and expense/expenditures. For defined benefit OPER, this Statement identifies the methods and assumptions that are required to be used to project benefit payments, discount projected benefit payments to their actuarial present value,and attribute that present value to periods of employee service. Note disclosure and required supplementary information requirements about defined benefit OPEB also are addressed. In addition,this Statement details the recognition and disclosure requirements for employers with payables to defined benefit OPEB pInst t are administered through trusts that meet the specified criteria and for employers whose employees are provided with defined contribution OPEB.This Statement also addresses certain circumstances in which a non employer entity provides financial support for OPER of employees of another entity. In this Statement,distinctions are made regarding the particular requirements depending upon whether the OPEB plans through which the benefits are provided are administered through trusts that meet the following criteria- • Contributions from employers and non employer contributing entities to the OPEB,plan and earnings on those contributions are irrevocable. • OPEB plan assets are dedicated to providing OPES to plan members in accordance with the benefit terms. • OPEB plan assets are legally protected from the creditors of employers, nonemployer contributing entities,the OPEB plan administrator, and the plan members. Effective Date This Statement is effective for fiscal years beginning after June 15, 2017. Earlier application is encouraged. How the Changes in This Statement Will Improve Financial Reporting The requirements of this Statement will improve tedecision-usefulness of information in employer and governmental nae mployer contributing entity financial reports and will enhance its value for assessing accountability and interceded equity by requiring recognition of the entire APED liability and a more comprehensive measure of OPER expense. Decision-usefulness and accountability also will be enhanced through new not disclosures and required supplementary information,as follows: • More robust disclosures of assumptions will allow for better informed assessments of the reasonableness of OPEB measurements. PeoPle + 3ss Explanations of how and why the OPER liability changed from year to year Will improve C,ohlu transparency. r, 8 Bin 1'41]d I 1t 1 N"'tuf bers 161