Which statement regarding the statement of plan net assets for a public employer retirement system is false?

The statement that the statement of plan net assets for a public employer retirement system must include estimated future liabilities for funding is misleading because financial statements are typically designed to present the assets and liabilities as of a specific point in time rather than projections of future liabilities. The primary focus of the statement of net assets is to provide a snapshot of the current financial position of the retirement system, which highlights available resources and obligations that exist at that moment.

The requirement to subtract costs associated with investment sales from the fair value of investments ensures that the reported fair value reflects the net amount that can be realized from the investment, providing a more accurate picture of the system's financial status.

Excluding allocated insurance contracts and related liabilities from the statement reflects the specificity of assets and liabilities that ought to be reported, ensuring clarity regarding what constitutes the plan's net assets.

Furthermore, indicating funding progress in the caption of net assets serves to inform stakeholders about how well the retirement system has been funded relative to its obligations, which is crucial for assessing the system’s financial health.

The nuances of the accurate presentation of these elements contribute to a clearer understanding of the retirement system's financial standing at a specific point in time.