What is the role of GASB in pension accounting?

• A. GASB establishes standards for recognizing pension liabilities, measuring pension costs, and disclosing net pension obligations.
• B. GASB sets district health care benefits for retirees.
• C. GASB audits pension plans for compliance.
• D. GASB determines employee compensation.

Answer: (B)

GASB’s role is to set the standards for how government entities report pension information. In pension accounting, this means establishing rules for recognizing pension liabilities, measuring pension costs, and disclosing net pension obligations in financial statements. These standards ensure consistent, transparent reporting so users can understand a government’s long-term pension obligations and funding status. GASB does not set retirees’ health care benefits, audit pension plans, or determine employee compensation—the board’s function is to prescribe accounting and reporting requirements, not benefit policy, auditing, or pay decisions.