GASB Considers Termination Benefits Exchange Transactions
September 21, 2005
Governmental Accounting Standards Board (GASB) Statement No. 47, Accounting for Termination Benefits, addresses accounting and reporting guidance for both voluntary and involuntary termination benefits. In the July issue of Business Officer, NACUBO incorrectly informed members that such termination benefits are considered nonexchange transactions. Rather, both voluntary and involuntary terminations are considered exchange transactions. In a nonexchange transaction, a government gives (or receives) value without directly receiving (or giving) equal value in return. In an exchange transaction, each party directly receives and gives up essentially equal values. With termination benefits there is an exchange, directly related to the termination, between the governmental employer and the employee.
Resources: GASB Statement 33, Accounting and Financial Reporting for Nonexchange Transactions; NACUBO’s Financial Accounting and Reporting Manual (FARM), Chapter 300; and Emerging Issues Update 02-4.
NACUBO staff resource: Sue Menditto, director, accounting policy.
- ED Proposes New Rules for Distance Education and Foreign Locations
- Senate Bill Would Increase Bank-Qualified Debt Limit
- New Statistics on College Enrollment and Completion Released
- 2016 CAO and CBO Collaborations
August 1-2, 2016
- 2016 Planning and Budgeting Forum
September 19-20, 2016
- 2016 Managerial Analysis and Decision Support
November 17-18, 2016
- ON-DEMAND: The CBO's Role in Diversity and Inclusion on Campus
- ON-DEMAND: The Clery Act: Strategic Planning to Mitigate Institutional Risk
- ON-DEMAND: Title IX: Key Issues Surrounding Institutional Compliance
- ON-DEMAND: NACUBO Live! Higher Education Accounting Forum
- ON-DEMAND: Responsibility Center Management: Two Different Perspectives