GASB Statement on Debt Disclosures Issued
A new Statement by the Governmental Accounting Standards Board (“GASB”) is aimed to improve debt disclosures in financial statement notes, such as those related to direct borrowings and direct placements. Issued as GASB Statement No. 88, Certain Disclosures Related to Debt, including Direct Borrowings and Direct Placements, the standard lists which liabilities governments should document in their disclosures associated with debt. The new guidance requires all debt disclosures should separate direct borrowings and direct placements of debt from other debt types. This requirement is due to direct borrowings and direct placements potentially exposing a government to risks different from or additional to risks associated with other debt types. For disclosure purposes, GASB Statement No. 88. Read More.
SeaPort Next Generation to Replace Seaport-E
In February, the Naval Sea Systems Command (“NAVSEA”) confirmed that the Seaport-E Multiple Award Contract (“MAC”) vehicle will be ending in 2019 and replaced with Seaport Next Generation (“Seaport-NxG”). NAVSEA started the Seaport contract vehicle in 2001 to maximize savings in procuring Professional Support Services (“PSS”). At the time, NAVSEA had more than 450 separate PSS contracts supporting its requirements. What started with 21 prime contractors grew into almost 3,200 prime contractors on Seaport-E. With that growth in contractors, the administrative costs to manage all of those schedules also increased. If the surge in contractors increased the competitiveness of solicitations,. Read More.
Public University Students Spending More in Tuition than the Government
According to the State Higher Education Executive Officers Association’s latest report, students in most U.S. states are now covering more of their tuition than the government. The report marks the first time that students are paying more than state governments for education costs. Reasons for the change include lower educational appropriations due to the 2008 recession, and states having trouble funding Medicaid programs and public-employee health and retirement plans. Additionally, such costs are outpacing state tax revenue growth. More on the State Higher Education Executive Officers Association’s report is available on WSJ.com. A subscription is required to access the article.
FASB to Review Backwards Tracing Related to Tax Reform
The Financial Accounting Standards Board’s (“FASB”) research team plans to review how the tax code changes stemming from the Tax Cuts and Jobs Act (“TCJA”) will impact backwards tracing, which is a practice U.S. GAAP currently prohibits. Backwards tracing is a practice in which the impact of a change in a deferred tax credit or charge is included in the same line item wherein the deferred taxes were initially recorded. According to FASB staff member Jason Bond, the board wants to review the costs of backwards tracing and consider alternatives to determine whether the benefits outweigh the costs. Bond remarked. Read More.
FASB to Align Materiality Definition with Other Organizations
The Financial Accounting Standards Board (“FASB”) has finalized a two-part plan that involves returning to an older definition of “materiality.” At its March 21 meeting, the board agreed to use the materiality definition stated in Statement of Financial Accounting Concepts (“CON”) No. 2, Qualitative Characteristics of Accounting Information, and add an internal guide to its Concepts Statements to help produce consistent requirements for new U.S. GAAP disclosures. According to the FASB, the concept of materiality under CON No. 2 aligns with the Securities and Exchange Commission, the Public Company Accounting Oversight Board, and the American Institute of Certified Public Accountants. Also. Read More.
Topics: AICPA, American Institute of Certified Public Accountants "AICPA", FASB, Financial Accounting Standards Board "FASB", materiality, Notes to Financial Statements (Topic 235), PCAOB, Proposed Account, Public Company Accounting Oversight Board "PCAOB", Securities and Exchange Commission "SEC", Statements of Financial Accounting Concepts
SEC Approves 2018 GAAP Financial Reporting Taxonomy
Announced in a press release by the Financial Accounting Standards Board (“FASB”), the Securities and Exchange Commission (“SEC”) has accepted the 2018 GAAP Financial Reporting Taxonomy. This year’s edition features accounting standards updates and other suggested improvements. The market regulator has also accepted the 2018 SEC Reporting Taxonomy (“SRT”). A new edition this year, the SRT covers the essentials needed to meet provisions for SEC-required financial schedules, condensed consolidating financial information for guarantors, and disclosures regarding oil- and gas-producing activities. FASB staff will discuss the 2018 GAAP Financial Reporting Taxonomy and SRT tomorrow during its live webcast . The event will start at 1:00 pm. ET.