What financial statements are required by GASB?

Required governmental fund statements are a balance sheet and a statement of revenues, expenditures, and changes in fund balances. Required proprietary fund statements are a statement of net assets; a statement of revenues, expenses, and changes in fund net assets; and a statement of cash flows.

What financial statements are required by GASB?

Required governmental fund statements are a balance sheet and a statement of revenues, expenditures, and changes in fund balances. Required proprietary fund statements are a statement of net assets; a statement of revenues, expenses, and changes in fund net assets; and a statement of cash flows.

What is the difference between GASB 67 and 68?

While GASB 67 eliminated the practice of asset smoothing in the reporting of pension assets, GASB 68 permits governments to continue a form of it. Governments are permitted to defer the recognition of the difference between the return expected on plan assets and the actual return.

What are GASB concept statements?

This Concepts Statement is one of a series that the GASB has issued or will issue. Concepts Statements are intended to provide a conceptual framework of interrelated objectives and fundamental principles that can be used as a basis for establishing consistent accounting and financial reporting standards.

What is Plan fiduciary net position?

Fiduciary net position, which equals assets, plus deferred outflows of resources, minus liabilities, minus deferred inflows of resources.

What financial statement reconciliations are required by the GASB and why are they required?

The GASB requires two financial statement reconciliations: (1) a reconciliation of the total governmental fund balances on the governmental funds balance sheet to the total governmental activities net position on the government-wide statement of net position and (2) a reconciliation of the net change in governmental …

On what should the governmental fund financial statements report?

The governmental fund financial statements are intended to report on fiscal accountability.

Does the government report pension liabilities?

Governments are now reporting a net pension liability (NPL) in their financial statements, along with other liabilities such as outstanding bonds. The NPL is a measure of the portion of a government’s obligation for pension benefits that is not covered by assets contributed to and invested by a pension trust fund.

What are net pension liabilities?

Net Pension Liability (NPL) The NPL is the liability of employers and non-employer contributionentities to plan members for benefits provided through a defined benefit pension plan. The Net Pension Liability is not an appropriate measure for assessing the need for or amount of future employer contributions.

What are the elements of government financial statements?

The elements of the financial statements will be assets, liabilities, net assets/equity, revenues and expenses.

How is net pension liability calculated?

The quick and easy calculation for pension liability is found using this formula: Pension assets minus pension obligations equals pension liability.

Where is net pension liability reported?

balance sheet
The net pension liability is the amount of the total pension benefit that is not funded by investment assets. This net unfunded pension benefit will be a line item in your balance sheet.

Which of the following financial statements are prepared for governmental funds?

The governmental fund financial statements include the Balance Sheet, and the Statement of Revenues, Expenditures, and Changes in Fund Balances and are prepared on the current financial resources measurement focus and modified accrual basis of accounting.

Does pension expense appear income statement?

Pension expense signals an employer’s annual cost for maintaining an employee’s pension plan. Employers who provide a pension plan must calculate and disclose plan assets and liabilities on an income statement, and make pension expense journal entries for any changes.

What is a pension liability on the balance sheet?

The term pension liability refers to the amount of money that a private company—or a city or state or federal government—has to account for in order to make future pension payments.

What funds are reported in government wide financial statements?

Governmental Fund Financial Statements. Governmental fund financial statements (including financial statements for the general, special revenue, capital projects, debt service, and permanent funds) should be prepared using the current financial resources measurement focus and the modified accrual basis of accounting.

What are the five components of pension expense?

Under Generally Accepted Accounting Principles (GAAP) in the United States, net pension expense is comprised of the following components:

  • Service cost.
  • Interest cost.
  • Return on plan assets for the period.
  • Gain or loss.
  • Prior service costs.
  • Transition amounts.

How are pension assets reported on the balance sheet?

Under a defined-benefit plan, a company reports either a net pension asset or a net pension liability. A company’s balance sheet will reflect a net pension asset if the fair value of the pension fund’s assets is higher than the present value of the estimated pension obligation.