The City of Bogue provides other postemployment benefits (OPEB)to its full-time employees.The City uses an actuary to measure its obligation.Which of the following should the City report as a liability in its government-wide statement of net position?

Question

Quizplus · Accepted Answer

The City of Bogue should report the cumulative difference between the annual accrual basis OPEB expense, as determined by the actuary, less payments to retirees and contributions to the OPEB plan as a liability in its government-wide statement of net position. This represents the long-term obligation that the City has to provide postemployment benefits to its full-time employees. The contribution made to the OPEB plan during the year and the unpaid portion of medical benefits it expects to pay retirees for events that happened during the year are both short-term obligations that should be reported in the governmental fund balance sheet.

The City of Bogue Provides Other Postemployment Benefits (OPEB)to Its