GOVERNMENT ACCOUNTING STANDARDSPosted On: Jun. 3, 2007 12:00 AM CST
GASB: Governmental Accounting Standards Board, a private-sector organization in Norwalk, Conn., that establishes accounting standards for state and local governments. Although these standards are not legally enforced, GASB standards are considered generally accepted accounting principles by most U.S. state and local governments, and officials generally adhere to them to maintain strong bond ratings for borrowing purposes.
GASB 45: Statement issued in 2004 requiring state and local governments to disclose their liability for "other post-employment benefits," also known as OPEB. Statement 45 also recommends that liabilities be funded in much the same manner as pensions, using an actuarial approach, rather than on a pay-as-you go basis as they traditionally have been funded.
OPEB: "Other post-employment benefits," such as health insurance, dental, vision, prescription or other health care benefits, some types of life insurance, legal services and other benefits.
Compliance dates for GASB 45: Dec. 15, 2006, for state governments and municipalities with annual revenues exceeding $100 million; Dec. 15, 2007, for municipalities whose yearly revenues are between $10 and $100 million; and Dec. 15, 2008, for public entities with less than $10 million in annual revenues.