Governmental accountants and auditors have been talking about Government Accounting Standards Board (GASB) Statement No 68, Accounting and Financial Reporting for Pensions, for several years and it is finally upon us. GASB 68 is effective for years ending after June 15, 2014, which means Kentucky cities, school districts, and other special districts with years ending June 30, 2015, should be analyzing the effects of this statement now. The biggest change affecting many Kentucky governmental entities is the requirement for participants in cost-sharing multiple-employer plans, such as that provided through the Kentucky Employees Retirement System (KERS) or County Employees Retirement System (CERS), to include their proportionate share of the net pension liability on their financial statements. This information was previously only reported by the Plan and not the employer.
GASB 68 is highly technical and complex and includes numerous new reporting and disclosure requirements. Our firm has analyzed the effects of the statement on Kentucky governmental entities and we can provide practical guidance on implementing this new standard. If you are a governmental entity or an accountant that performs work for governmental entities and need help implementing this new standard please contact Heather R. Cochran.