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n.n a <br />ACCOUNTING STANDARDS UPDATE <br />'.1!_'11 !!I' <br />lh <br />APPENDIX B <br />11 I <br />Defined Benefit Pension Plans <br />This statement was issued in November, 1994 and establishes financial reporting standards for <br />defined benefit pension plans that administer postemployment healthcare plans. It is an interim <br />statement that is pending the completion of the GASB's project on accounting and financial <br />reporting of other postemployment benefits by plans and employers. <br />This statement requires two statements: statement of postemployment healthcare plan net assets, <br />and statement of changes in postemployment healthcare plan net assets. The notes should <br />include a brief description of eligibility requirements and required contribution rate(s) of the <br />employer(s). Supplementary schedules are not required, but if disclosed, should include all <br />information required for the defined benefit pension plan. <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 />GASB No. 27 Accounting for Pensions by State and Local Governmental Employers <br />This statement was issued in November, 1994. It establishes standards for measurement, <br />recognition and display of pension expenditures/expense and related liabilities, assets, note <br />disclosure, and if applicable, required supplementary information in the financial reports of <br />governmental employers. This statement supersedes all previous authoritative guidance on <br />accounting for pensions. <br />Significant changes from previous authoritative guidance are as follows: <br />• eliminates the requirement for reporting standardized measure of the pension benefit <br />obligation and substitutes the actuarial accrued liability produced by the method used to <br />fund the plan. <br />• reduces the number of note disclosures and the level of detail previously required. <br />Employers that participate in cost - sharing multiple - employer plans (i.e. PERA) should recognize <br />annual pension expenditures equal to their contractually required contributions to the plan. <br />This statement is effective for periods beginning after June 15, 1997. <br />PREPARED BY TAUTGES, REDPATH & CO., LTD. PAGE 6 OF 8 <br />