Don't Get Mired In Obfuscating Aspects of New GASB 68 Pension Accounting Standards

There is a difference between pension income statements and actual cash contributions that “can exhibit misleading annual volatility,” a Moody’s report stated. New Governmental Accounting Standards Board (GASB) Statement GASB 68 Pension Accounting Standards guidelines could result in a rapidly varying spread in reporting, but Moody’s puts the “material reporting change” in perspective.

Pension Accounting GASB 68 - Watch the cash outlays when considering pension obligations

Many pension funds are increasingly facing trouble meeting their obligations, and sub-par investment returns well under their budgeted target of 7% to 8% are not helping.

Moody’s, which plays a key role...