GASB Releases Fiduciary Activities Article
The Governmental Accounting Standards Board (“GASB”) recently published an article covering its new guidance for governmental entities to help identify fiduciary activities, and determine whether and how business-type activities must report fiduciary activities. The article, Statement 84: Understanding Costs and Benefits: Fiduciary Activities, explains the board’s assessment of the expected costs and benefits of GASB Statement No. 84, Fiduciary Activities, and how the GASB concluded that the expected benefits exceed the cost. In addition, the article covers the board’s due process in implementing GASB Statement No. 84 and summarizes the standard’s costs and benefits.
GASB Issues Exposure Draft on Majority Equity Interests
New accounting and financial reporting guidance could be on the way for state and local governments with a majority equity interest in an organization that is legally separate following acquisition. In its recently issued Exposure Draft, Accounting and Financial Reporting for Majority Equity Interests, the Governmental Accounting Standards Board (“GASB”) proposes that a government’s majority equity interest in a legally separate organization could be disclosed as an investment if the equity interest falls under the board’s definition of an investment. The equity method would be applied to majority equity interests that fit the definition of an investment, with the exception of certain situations. If a majority equity interest in a. Read More.
Revised White Paper Issued on Governmental and Business Financial Reporting
Helping distinguish between governmental and business financial reporting, a revised White Paper has been issued by the Governmental Accounting Standards Board (“GASB”). The White Paper, Updated: Why Governmental Accounting and Financial Reporting Is—and Should Be—Different , elaborates that the difference between governmental accounting and reporting standards and the standards for for-profit businesses require independent standards so that the information provided meets the needs of stakeholders when assessing government accountability, as well as to help make political, social and economic decisions. The White Paper also provides guidance on specific questions that typically arise regarding why general purpose governments cannot use accounting standards developed for for-profit businesses. Download the White Paper from the GASB website.
FAF Trustees Continue GASB Scope of Authority Policy
The Financial Accounting Foundation’s (“FAF”) Board of Trustees recently approved the continuation of the Governmental Accounting Standards Board’s (“GASB”) scope of authority policy. The report, Three-Year Review of GASB Scope of Authority: Consultation Process Policy, offers the GASB and FAF’s Standard-Setting Process Oversight Committee a pre-agenda consultation roadmap for deciding whether information the GASB considers for standard-setting purposes fits the board’s standard-setting mission. The report also orders the FAF to assess the consultation process three years after implementation.
2017 Compliance Supplement Issued
In a follow-up to our June 16 blog , the Executive Office of the President Management and Budget has issued the final version of the 2017 Compliance Supplement . The document can be downloaded from White House website.
COFAR Updates Frequently Asked Questions Document on Uniform Guidance
The Council on Financial Assistance Reform has issued a revised frequently asked questions (“FAQs”) document on the Office Management and Budget’s (“OMB”) Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards at 2 CFR 200. Updated as of July 2017, the document features 24 new FAQs and four revised FAQs. Download the new FAQs document on OMB’s Uniform Guidance at 2 CFR 200 here.