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PENINSULA AIRPORT COMMISSION
NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 2025
17
Note 2—Summary of significant accounting policies (continued)
Virginia Retirement System (“VRS”) Pensions and Other Postemployment Benefits (“OPEB”) – For purposes of
measuring all financial statement elements related to pension and OPEB plans, information about the fiduciary
net position of the Commission’s plans and the additions to/deductions from the Commission’s Plan’s fiduciary
net position have been determined on the same basis as they were reported by the VRS. For this purpose, benefit
payments (including refunds of employee contributions) are recognized when due and payable in accordance
with the benefit terms. Investments are reported at fair value.
Deferred Outflows/Inflows of Resources – In addition to assets, the statement of net position reports a separate
section for deferred outflows of resources, representing a consumption of net assets that applies to future periods
and so will not be recognized as an outflow of resources until then. In addition to liabilities, the statement of net
position reports a separate section for deferred inflows of resources, representing an acquisition of net assets that
applies to future periods and so will not be recognized as an inflow of resources until that time. The Commission
has the following items that qualify for reporting as either deferred inflows or outflows:
•
Contributions subsequent to the measurement date for pensions and OPEB are a deferred outflow and will
be applied to the net pension or OPEB liability in the next fiscal year.
•
Differences between expected and actual experience for economic/demographic factors in the measurement
of the total pension or OPEB liability. These differences will be recognized in pension or OPEB expense over
the expected average remaining service life of all employees provided with benefits in the plan and may be
reported as a deferred inflow or outflow.
•
Differences resulting from changes in assumptions on pension plan or OPEB investments. This change in
flow of resources will be recognized in pension or OPEB expense over the estimated remaining service life
of employees subject to the plan.
•
Difference between projected and actual earnings on pension and OPEB plan investments. This change in
flow of resources will be recognized in pension or OPEB expense over a closed five-year period.
•
Difference resulting from a change in the Commission’s proportion of the collective net OPEB liability. This
change in flow of resources will be recognized in OPEB expense over the expected average remaining
service life of all employees provided with benefits in the plan.
•
Differences result from deferred amounts related to leases.
New Accounting Pronouncement – During the year ended June 30, 2025, the Commission implemented
Government Accounting Standards Board (“GASB”) Statement 101, Compensated Absences. This statement
provides updated guidance on recognizing and measuring liabilities for compensated absences. Under GASB
Statement 101, such liabilities are recognized when the leave is attributable to past services, payment is probable,
and the amount can be reasonably estimated. This includes both leave expected to be used in future periods and
leave payable upon employee separation. The liability is measured using current pay rates as of the financial
statement date, including applicable salary-related costs. There was no restatement of beginning net position as
a result of the cumulative effect of adoption of GASB Statement 101.
GASB has issued several other pronouncements that may impact future financial presentations. Management
has not currently determined what, if any, impact implementation of the following statements may have on the
financial statements of the Airport:
GASB Statement 103, Financial Reporting Model Improvements
GASB Statement 104, Disclosure of Certain Capital Assets
Subsequent Events – In preparing these financial statements, the Commission has evaluated events and
transactions for potential recognition or disclosure through November 26, 2025, the date the financial statements
were available to be issued.
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