Question

GASB standards require a 10-year schedule that displays changes in the ______.

total pension liability
net pension liability
net position of the pension fund

Answer 1

GASB standards require a 10-year schedule that displays changes in the net pension liability.

Step-by-step explanation:

GASB stands for Governmental Accounting Standards Board, which sets accounting and financial reporting standards for state and local governments in the United States. GASB standards require a 10-year schedule that displays changes in the net pension liability.

The net pension liability represents the difference between the total pension liability and the assets available to fund those liabilities. It is an important measure of the financial health of a pension fund. The 10-year schedule helps to monitor the changes in the net pension liability over time.For example, if the net pension liability increases over the years, it may indicate that the pension fund's liabilities are growing faster than its assets, which could lead to potential funding challenges in the future.