A Casualty Actuary's Guide to GASB Statement No. 10- Criteria for Development for Determining Applicability of GASB 10 to Alternative Risk Programs and Suggested Guidelines for Actuarial Implementation

The Government Accounting Standards Board Statement No. IO (GASBIO) establishes accounting and financial reporting standards for risk financing and insurance related activities of governmental entities. It raises several issues that are not clearly defined for the actuary. At the current time the American Academy of Actuaries’ Actuarial Standards Board is not contemplating a Compliance Standard for GASB 10. The intent of this paper is to provide some guidelines and commentary on how to address some of the less defined areas of the statement. While GASB IO establishes standards for both entities other than pools and pools, this paper only looks at the standards as they apply to entities other than pools. The provisions of GASB IO apply to all state and local governmental entities. In addition, colleges and universities have the option of either using the AICPA College Guide model or the Governmental model. This paper will sequentially analyze the various sections of GASB 10.