There is a difference between pension income statements and actual cash contributions that “can exhibit misleading annual volatility,” a Moody’s report stated. New Governmental Accounting Standards Board (GASB) Statement GASB 68 Pension Accounting Standards guidelines could result in a rapidly varying spread in reporting, but Moody’s puts the “material reporting change” in perspective. Pension Accounting GASB 68 – Watch the cash outlays when considering pension obligations Many pension funds are increasingly facing trouble meeting their obligations, and sub-par investment returns well under their budgeted target of 7% to 8% are not helping. Moody’s, which plays a key role in rating…
Don't Get Mired In Obfuscating Aspects of New GASB 68 Pension Accounting Standards
Mark Melin
Mark Melin is an alternative investment practitioner whose specialty is recognizing the impact of beta market environment on a technical trading strategy. A portfolio and industry consultant, wrote or edited three books including High Performance Managed Futures (Wiley 2010) and The Chicago Board of Trade’s Handbook of Futures and Options (McGraw-Hill 2008) and taught a course at Northwestern University's executive education program.