GASB issues statement on financial impact of environmental cleanups, proposal on pension disclosures.

Reflecting its intention to ensure that costs and liabilities not specifically addressed by current governmental accounting standards are included in financial reports, the Governmental Accounting Standards Board recently issued a standard that will require state and local governments to provide the public with better information about the financial impact of environmental cleanups.

To provide governments with better accounting guidance and consistency, GASB Statement No. 49, Pollution Remediation Obligations, identifies the circumstances under which a governmental entity would be required to report a liability related to pollution remediation. Statement 49 will be effective for financial statements for periods beginning after June 15, 2007.

In addition, the GASB issued a proposal that would bring current pension disclosure requirements for governments and governmental...