GASB proposes reporting post-employment benefits. (Top of the news: the complete chronicle of news and trends shaping the profession).

Accounting Today, March, 2003 by Glenn Cheney

NORWALK, CONN. -- State and municipal governments are bracing for a fiscal shock as the Governmental Accounting Standards Board proposes that they account for and report the annual cost and outstanding obligations of post-employment benefits not covered under the board's statement on pension funding.

The exposure draft is of two statements that would require accrual-basis measurement and recognition of "other post-employment benefits" costs, including the big one, health care benefits. Governmental employers would also be required to provide information about actuarial accrued liabilities and to what extent the plan is being funded.

"This has been a very, very big effort of several years," said Tom L. Allen, GASB chairman. "This is a major focus of what GASB...