Category - Accounting

Credits in the CreditScope database follow the financial reporting standards set forth by either the Financial Accounting Standards Board (FASB) or the Governmental Accounting Standards Board (GASB). Both FASB and GASB are independent organizations that fall under the administration of the Financial Accounting Foundation (FAF), and both are considered the authoritative voice in financial reporting. FASB, established in 1973, provides financial reporting guidelines for nongovernmental entities, including certain not-for-profit entities. GASB, founded in 1984, sets financial reporting...

Category: Accounting

Cases of unfunded pension liabilities among state and local government issuers have emphasized the importance of considering pension obligations in the analysis of municipal credits. But not all pension plans are alike, and a clear understanding of the various types of retirement plans can help determine the amount of risk a plan may carry for the underlying credit. Pension plans generally fall into two categories: defined benefit and defined contribution. Governments have traditionally provided the defined benefit plan, which largely calls for the sponsoring government to bear the...

Category: Accounting