GASB Task Force to Review Financial Reporting by Native American Tribes
The Governmental Accounting Standards Board (“GASB”) has formed a task force responsible for examining financial reporting options for Native American tribes. Several tribes rely on the GASB’s guidance regarding any issues they come across. Task force members were chosen due to their knowledge of tribal accounting. Members of the task force are as follows: Heather Acker, Baker Tilly Virchow Krause LLP partner Lacey Horn, Cherokee Nation treasurer Christopher Lee, Key Bank vice president—head of government credit Paul Mansour, Conning Holdings Ltd. managing director and head of municipal research Hattie Mitchell, Native American insurance company AMERIND Risk director of finance and. Read More.
GASB Seeks Comments on Conduit Debt Obligations Proposal
There is still time to submit comments regarding the Governmental Accounting Standards Board’s (“GASB”) proposed Statement to streamline how government issuers disclose conduit debt obligations. In the Exposure Draft, Conduit Debt Obligations, the GASB offers a single method for reporting such obligations and eliminating diversity in practice. The proposal also offers accounting guidance when there are additional commitments given by government issuers and addresses a topic not addressed by GASB 87, Leases. Comments on the proposal are due Friday, November 2. For more on this Exposure Draft, read the press release .
GASB Issues Guidance on Majority Equity Interests
Last month, the Governmental Accounting Standards Board (“GASB”) issued new guidance to help state and local governments with their treatment of equity interests for financial reporting purposes. According to GASB Statement No. 90, Majority Equity Interests, a government entity’s majority equity interest in a legally separate business must be disclosed as an investment if the equity interest meets the definition of an investment. Statement No. 90 is effective for reporting periods starting after December 15, 2018. Early application is encouraged. More on Statement No. 90 is available in the GASB press release.
Government Accountability Office Revises Yellow Book Standards
The U.S. Government Accountability Office (“GAO”) has updated its generally accepted government auditing standards to improve the quality of governmental audits. Commonly known as the “Yellow Book,” the revised standards supersede their 2011 counterparts and provide transparency and accountability for auditors when providing the public with unbiased analysis and information. Some of the changes include reformatting the chapters that distinguish requirements from application guidance, adding a definition for waste and related examples, and specific considerations for when internal control is significant to the audit objectives for performance audits. The revised standards must be applied to financial audits, attestation engagements, and. Read More.
GASB Issues Statement on Interest Cost Incurred Before End of Construction Period
The Governmental Accounting Standards Board (“GASB”) has released GASB Statement No. 89, Accounting for Interest Cost Incurred before the End of a Construction Period , which aims to improve the significance and comparability of information on capital assets and borrowing costs for a reporting period. GASB Statement No. 89 also streamlines the accounting for interest cost incurred prior to the end of a construction period. For governments that use the economic resources measurement focus to prepare financial statements, interest cost incurred prior to a construction period’s end must be labeled as an expense during the period wherein the cost is incurred. The interest cost should not be capitalized with the historical cost of a capital asset. For. Read More.
Questionnaire Issued for Actuarial Section of OPEB Plan Reports
A six-page questionnaire to complete with comprehensive annual financial reports (“CAFRs”) for other post-employment benefits (“OPEB”) plans was recently issued by the Government Finance Officers Association (“GFOA”). Questions for the Actuarial Section of an OPEB Plan’s Comprehensive Annual Financial Report replaces the actuarial section of the GFOA checklist, Postemployment benefit systems and investment pools. The GFOA advises that the new questionnaire is exclusive to the actuarial section of the CAFRs for OPEBs that have applied Governmental Accounting Standards Board Statement No. 74, Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans. An update for the entire checklist is expected soon. The questionnaire is available on the GFOA website.