GASB 75 has arrived (for most municipal entities).
The effective date for adopting the new accounting standard is for fiscal years beginning on or after June 15, 2017.
Entities that are preparing a valuation for December 31, 2017 are permitted to continue using the GASB 75 reporting standard for the 2017 year end.
It gets tricky for December 31, 2017 entities because both GASB 75 and GASB 75 permit reporting on a two-year cycle. Be sure to ask your actuarial firm to provide an actuarial report with disclosures for two years.
To assist our clients that have fiscal years that include reporting requirements for both standards, Jefferson Solutions prepares reports that will incorporate both standards. We believe that this is the most cost effective way to address the change in accounting standard.
Using a report that incorporates both standards also enables your auditors to provide a more accurate accounting transition our auditors with accounting for the transition. If your audit report presents more than one year, you will need to restate your OPEB liability under the GASB 75 standard for the 2017 year to be properly presented in your 2018 financial statement (next year’s financial statement).
Jefferson Solutions, Inc. has a simple philosophy. We ensure GASB 75 and GASB 74 / 75 compliance that will be efficient, timely, and trusted. Please visit our website to request a free quote.
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