Obtain a copy of GASB Statement No. 47, “Accounting for Termination Benefits.” Familiarize yourself with the accounting and financial reporting requirements, as well as the background of the statement and the rationale for the GASB’s decisions.

Required
1. Prepare a brief summary defining “termination benefits” and describing how GASB Statement No. 47 potentially affects the financial statements of state and local governments. How is financial reporting improved?
2. Briefly explain the difference between involuntary termination benefits and voluntary termination benefits. How do recognition requirements for termination benefits differ for statements prepared on an accrual basis compared to those prepared on a modified accrual basis?
3. Summarize the note disclosures that are required for employers that offer termination benefits.