FASB ASC 715-60 and GASB 75 accounting standards
What are the FASB ASC 715-60 and GASB 75 accounting standards, and how do they relate to retiree healthcare benefits?
As you know, most employees are covered by an employer-sponsored healthcare plan. In most cases, the coverage ceases when the employee terminates employment (more precisely, when the COBRA extended coverage ceases). Employers offering post retirement health care benefits continue to cover those retirees who have satisfied certain predetermined requirements, such as age 55 with 15 years of service with the organization. The Financial Accounting Standards Board (FASB) and the Governmental Accounting Standards Board (GASB) issued accounting standards related to post retirement benefits that generally require the cost of post-retirement healthcare benefits, also referred to as OPEB benefits, to be accrued over the working lifetime of the employee.