NEW PENSION REPORTING FOR THE PUBLIC SECTOR
In 2012, the Governmental Accounting Standards Board (GASB) issued two new standards that will substantially change the accounting and financial reporting of public employee pensions by state and local governments. Stmt. No. 67, Financial Reporting for Pension Plans, revises existing guidance for the financial reports of most pension plans. Stmt. No. 68, Accounting and Financial Reporting for Pensions, revises and establishes new financial reporting requirements for most governments that provide their employees with pension benefits.
The net pension liability will appear on the face of the financial statements for the first time. The changes in presentation will provide users with a clearer picture of the size and nature of the financial obligations to current and former employees for past services rendered. Robert H. Atmore, GASB chairman, said the board intended to "peel back the veil so things are more transparent and there's more information for policy makers."
The provisions of Stmts. 67 and 68 are effective for financial statements for fiscal years beginning after June 15. 2013 and 2014, respectively. Earlier application is allowed.
The full GASB statements and additional information can be found at www.gasb.org.
|It’s time for mid-year tax planning — ATRA offers businesses many opportunities|
Under the recently enacted American Taxpayer Relief Act (ATRA), businesses have many tax-saving opportunities, some of which might not be available next year. ATRA provides other opportunities, as well. This article discusses depreciation and expensing; research credits; and setting up a nonqualified deferred compensation plan. (A sidebar notes the importance of meeting IRS timing requirements for such a plan.)
|Follow the rules when you refinance a home|
Refinancing a home may be a great idea when mortgage rates are low. But, while it’s smart to look for the best deal, it’s also wise to understand the tax consequences. This article looks at tax issues involving acquisition indebtedness, straight replacement vs. cash-out refinancing, and the amortization of points.
|Can you afford long-term care? — Consider trading in a life insurance policy for LTC coverage|
One of the greatest threats to the financial security of one’s retirement as well as to the achievement of estate planning goals may be a nursing home stay or some other form of long-term care. And, while long-term care (LTC) insurance can be a great way to protect wealth against this risk, it can be expensive. One option for funding an LTC policy is to “trade in” a life insurance policy or annuity contract that’s no longer needed. This article examines what’s involved.
In this issue, “Tax Tips” takes a look at IRS substantiation requirements to support a charitable deduction; a simpler way of claiming a home office deduction; and why it can be beneficial to invest in qualified small business stock (QSBS) before the end of this year.
This publication is distributed with the understanding that the author, publisher and distributor are not rendering legal, accounting or other professional advice or opinions on specific facts or matters, and accordingly assume no liability whatsoever in connection with its use. ©2013 • TXImj13
IRS CIRCULAR 230 DISCLOSURE: As required by United States Treasury Regulations, you should be aware that this communication is not intended by the sender to be used, and it cannot be used, for the purpose of avoiding penalties under United States federal tax laws or promoting, marketing, or recommending to another person any transaction or matter addressed in this communiciation.