Laserfiche WebLink
MIN <br />MON <br />MOW <br />NNW <br />Vows <br />w <br />WNW <br />ACCOUNTING STANDARDS UPDATE <br />APPENDIX B <br />Further, GASB 24 clarifies how on -behalf payments for fringe benefits and salaries should be <br />reported. On behalf payments for fringe benefits and salaries are direct payments by one entity <br />to a third -party recipient for employees of another, legally separate entity. Revenue should be <br />recorded at the amount the recipient received. If the employer is legally responsible for the <br />payment, expenditures/expenses should equal the revenue recognized. If the employer is not <br />legally responsible for the payment, it should follow the accounting standards for that type of <br />transaction to recognize expenditure/expense. <br />This statement is effective for fmancial statements for periods beginning after June 15, 1995. <br />GASB No. 25 Financial Reporting for Defined Benefit Pension Plans and Note Disclosures <br />for Defined Contribution Plans <br />This statement was issued in November, 1994 and supersedes all previous authoritative guidance <br />on accounting and financial reporting for defined benefit pension plans of state and local <br />government entities. <br />This statement replaces the traditional balance sheet and income statements with two different <br />financial statements: statement of plan net assets which reports the fair value and composition <br />of plan assets, liabilities, and net assets held in trust for pension benefits and statement of <br />changes in plan net assets which reports the principal year- to-year changes. Also required are <br />two supplementary schedules: the schedule of funding progress, which reports, for a minimum <br />of six years, the actuarial value of assets, the actuarial accrued liability and the relationship <br />between the two, and the schedule of employer contributions, which reports the annual required <br />contributions of the employer. <br />GASB 25 also requires defined contribution plans to disclose the plan description, summary of <br />significant accounting policies and if any investments in any one organization represent five <br />percent or more of plan net assets. <br />This Statement is effective for financial statements for periods beginning after June 15, 1996. <br />GASB No. 25 should also be implemented in the same year as GASB No. 26. <br />PREPARED BY TAUTGES, REDPATH & CO., LTD. PAGE 5 OF 8 <br />