Counting Retirement Expenditures Before They Hatch: GASB and the New Reporting Requirements for Other Postemployment Benefits

Abstract

In June of 2004, the Governmental Accounting Standards Board issued a new standard that requires governments to place other postemployment benefits on their books. Previously these obligations were reported on a cash basis. Under the new standard, expenses and liabilities will be accrued over the life of the employee's service. Governments that fail to fully fund these new expenses will be required to post a liability to their books.