What are potential consequences of not following GASB 45?
If an employer does not comply with GASB 45, the employers auditor will most likely require that the employer hire an actuary to perform a GASB 45 valuation. Non-compliance with GASB 45 may also have a negative impact on the employers external audit opinion and bond rating. Under most scenarios, auditors will report qualified or adverse opinions on the financial statements of an entity that does not follow GAAP. Bond rating agencies have stated that not following GASB 43 and GASB 45 could be viewed as a negative management factor.
