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New GASB Pension Rules’ Impact on Bond Ratings

Affecting state and local governments that issue bonds assessed by rating agencies, Governmental Accounting Standards Board (“GASB”) Statements No. 67 and No. 68 feature new pension reporting rules that add significant liabilities to governmental balance sheets. Effective earlier this year, the new rules have concerned numerous plan sponsors, as well as are potentially detrimental to government budgets that rely heavily on state and municipal bonds for funding. However, the new reporting rules will not impact most public plan sponsors’ credit ratings, and each locality should become aware of what rating agencies are intending to do. For the full article , visit the. Read More.

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Measurement Date Clarity Requested for Reporting Pension Liabilities

As state and local governments prepare financial reports for their pension plans to comply with Government Accounting Standards Board (“GASB”) Statement No. 67, Financial Reporting for Pension Plans—an amendment of GASB Statement No. 25, and No. 68, Accounting and Financial Reporting for Pensions, several accountants are still confused which measurement date to use for recording liabilities. The issue was a hot topic among attendees at this week’s Government Accounting and Auditing Update Conference, attended by Cherry Bekaert Partner Patricia Pryor . Discussing the matter, conference attendee Jeff Markert remarked that state and local governments are confused about which date to use because. Read More.

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SEC’s Gallagher Speaks on Municipal Securities Market

At the Municipal Securities Rulemaking Board’s inaugural Municipal Securities Regulator Summit recently, the U.S. Securities and Exchange Commission’s (“SEC”) Daniel Gallagher shared with attendees the SEC’s efforts to review the municipal securities market. A few years ago, the SEC held public hearings in on the municipal securities market. The hearings eventually led to the 2012 Report on the Municipal Securities Market. During his speech in Washington D.C., Gallagher discussed various issues facing municipal securities markets, such as riskless principal transactions, post-trade price transparency, the best execution issues related to retail customers, and threats posed by pension and other post-employment retirement. Read More.

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