GASB 45The Governmental Accounting Standards Board (GASB) issued Statement 45 (GASB 45) in June 2004; This statement establishes accounting and reporting standards for post-employment benefits other than pensions, or “other post-employment benefits (OPEBs),” offered by state and local governments. It requires local governments to actuarially determine their required annual contribution (ARC) to fund OPEB and to record the unfunded amount as a liability in the annual financial statements. Government employers required to comply with GASB 45 include all states, cities, boards of education, public schools, and all other government entities that offer OPEB and report under GASB. In this article, we will provide an overview of this declaration and see how it will affect government entities. In addition to pensions, many state and local public employers offer other post-employment benefits (OPEBs) as part of the total compensation offered to attract and retain employees. the services of qualified employees. OPEB includes post-employment health care, as well as other forms of post-employment benefits (e.g., life insurance) when provided separately from a retirement plan…. (GASB 45) Accounting and reporting standards that address pension obligations have been in place for many years. However, due to the lack of authoritative accounting and reporting standards for OPEBs, these liabilities have not been reported. GASB 45 establishes standards for measuring, accounting and reporting OPEB expenses or expenses and associated liabilities or assets, disclosure notes and, where applicable, required supplementary information (RSI) in the financial reports of state and local government employers. This declaration requires a government exchange...... middle of paper...... benefits. December 1st. Available at: http://www.westvirginia.com/peia/content/WV%20OPEB%20Final%20Report%202005%206-30-06%20 (corrected%20page%203).pdf.. 2005. Companies in S&P 500 are significantly underfunded for other post-employment benefits (OPEB). Extract, December 19. Available at: http://goliath.ecnext.com/coms2/summary0199-5047543 ITM. • Summary of Statement No. 45. Accessed November 2, 2013 at http://www.gasb.org/st/summary/gstsm45 .html• The anticipated impact of Government Accounting Standards Board (GASB) Standard 45. (nd). CMSplus. Retrieved November 3, 2013 from http://iafc.cms-plus.com/files/GASB45Qa3.pdf • Yusuf, J. and Musumec, T. (2012). CHANGE AND/OR FINANCING OF OPEB'S PROMISES: A TYPOLOGY OF LOCAL GOVERNMENT RESPONSES TO GASB 45 AND THE REALIZATION OF OPEB'S LIABILITIES. Journal of Public Budgeting, Accounting and Financial Management, 24(3), 369-396.