This document discusses updates on GASB statements 68 and 74. It provides information on the financial statement impact of GASB 68, including adding a net pension liability which caused unrestricted net position to become negative for most cases. It also answers questions about whether districts are required to fund the liability and if contribution rates will increase. Upcoming GASB statements 72-80 are also listed, with statement 72 requiring additional fair value measurement disclosures.

1. GASB Hot Topics/Updates

2. GASB 68 – A Look Back
ASRS provided –
Schedule of Pension
Amounts by Employer

3. GASB 68 – A Look Back
Financial Statement Impact
Restatement of beginning net position
New accounts include net pension liability, deferred outflows of
resources and deferred inflows of resources for pension plan items
Significant decreases in net position
Negative unrestricted net position

4. GASB 68 – A Look Back
Financial Statement Impact on Net Position
Addition of the net pension liability to the financial statements
caused the unrestricted net position amount to be negative in
most cases.

5. ASRS Pension Discussion
• Comments and questions arising from press, board members
and others
• Liability decreased in fiscal year 2015, likely to increase for
fiscal 2016
• Employers may be requested to provide employee information
as part of ASRS audit
• Health care benefits liability to be added in a few years

6. ASRS Pension Discussion
Question:
Is the District required to fund or set aside resources to pay the liability?
Is ASRS going to increase contribution rates to fund the deficit?
Answer:
There is no requirement to fund or set aside resources to pay the liability.
As Arizona school districts are required to make the annual required
contribution some would argue this in not a fiscally sound decision.
ASRS rates are determined based on numerous factors not included in
the calculation of the liability reported, including smoothing of
investment returns (or losses) and amortization of the liability over 30
years.

7. GASB 68 – A Look Back
Common Questions & Information Sources
• Bond Rating
• Moody’s Special Comment
• https://www.moodys.com/research/Moodys-New-pension-disclosures-
under-GASB-6768-will-have-limited--PR_303049
• Funding the Net Pension Liability
• Factors Impacting the Pension Liability Moving Forward?
• Others?
Information Sources
• Auditor General: http://www.azauditor.gov/reporting-guidelines-0
• ASRS: http://www.azauditor.gov/school-district-reporting-guidelines

8. Upcoming GASB Statements
• Statement No. 72: Fair Value Measurement and Application
• Statement No. 73: Accounting and Financial Reporting for Pensions and Related Assets That Are Not Within The Scope
of GASB Statement 68, and Amendments to Certain Provisions of GASB Statements 67 and 68
• Statement No. 74: Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans
• Statement No. 75: Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions
• Statement No. 76: The Hierarchy of Generally Accepted Accounting Principles for State and Local Governments
• Statement No. 77: Tax Abatement Disclosures
• Statement No. 78: Pensions Provided Through Certain Multiple-Employer Defined Benefit Pension Plans
• Statement No. 79: Certain External Investment Pools and Pool Participants
• Statement No. 80: Blending Requirements For Certain Component Units – An Amendment of GASB Statement No. 14

9. 2016 GASB Statement
• Statement No. 72: Fair Value Measurement and Application
• The statement requires disclosure about fair value measurements;
specifically, the level of fair value hierarchy, valuation techniques, and
additional disclosures regarding investments in certain entities that
calculate net asset value per share (or its equivalent)
• Cash and investments note to change – “Level 1, 2, 3” identification for fair
value of investments
 Not applicable to participation in County and State Treasurer pools