GASB Issues Exposure Draft on Debt Disclosures
On Wednesday, the Governmental Accounting Standards Board (“GASB”) released an exposure draft that proposes guidance to improve debt-related disclosures in financial statements. Issued as Certain Disclosures Related to Debt, including Direct Borrowings and Direct Placements , the Exposure Draft offers guidance that would state which liabilities governments must disclose in their financial statements. Such liabilities include direct borrowings and direct placements. The proposed guidance would describe debt for disclosure purposes as a liability arising from a contractual requirement to pay cash or other assets to resolve a fixed amount at the date of the established contractual obligation. Leases and trade accounts payable would receive exemption from the guidance. In addition, the new. Read More.
New GASB Statement on Leases Issued
The Governmental Accounting Standards Board (“GASB”) has issued a new single model to help state and local governments report leasing agreements. GASB Statement (“GASBS”) No. 87, Leases, categorizes leases as financing arrangements that allow customers to use the leased asset. Per the standard, governments that act as lessees must report a liability for the contract, as well as report an intangible asset indicating their ability to use the leased item. For government entities that are lessors, they must disclose a receivable for the lease and a deferred inflow of resources. Nonfinancial assets such as vehicles, heavy equipment, and property are. Read More.
2017 Local Government Benchmarking Survey Results
Cherry Bekaert is pleased to present the results of our 6th Annual State and Local Government Benchmarking Survey. Based on the feedback from over 150 survey participants, we are able to share these valuable results allowing government entities to compare their own performance, accomplishments and struggles with similar entities across the Southeast. We hope this report will help you better understand how your peers in the region are responding or planning to respond to a wide range of current issues. Highlights from this year’s results include: Competitiveness of salaries was the most common factor attributed to turnover 15 percent of respondents. Read More.
2017 Compliance Supplement Draft Issued
Due to delays, the Office of Management and Budget recently issued a final draft of the 2017 Compliance Supplement . The final draft allows auditors to plan their 2017 Single Audit engagements. Substantial revisions are not expected, but the draft 2017 compliance supplement might change in the final clearance phase.
GASB Chairman Offers Financial Reporting Model Update
In his “From the Chairman” column for the latest GASB Outlook newsletter, Governmental Accounting Standards Board (“GASB”) Chairman David Vaudt provides an update to the financial reporting model. Vaudt discusses what the GASB has done since issuing an Invitation to Comment last year, such as holding five public hearings and providing updates around the country. He also mentions the GASB’s plans this summer to redeliberate feedback from stakeholders and the public hearings. Vaudt’s “From the Chairman” column can be read at GASB.org.
GASB Newsletter Discusses New Leases Standard
In its latest newsletter, GASB Outlook, the Governmental Accounting Standards Board (“GASB”) highlights the board’s forthcoming standards on lease accounting. Expected to be issued later this month, the new standard is necessary due to the current leasing guidance predating the GASB. The existing guidance also does not consider the conceptual framework, such as the definitions of assets and liabilities. Further, the new guidance will eliminate the distinction between operating and capital leases by handling all leases as financings. The lease standard will be effective for reporting periods starting after December 15, 2019. Read the full newsletter article on GASB.org.