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.
GASB to Issue Debt Disclosures Exposure Draft
An Exposure Draft by the Governmental Accounting Standards Board (“GASB”) is on the way covering debt disclosures. The Exposure Draft, Debt Disclosures, including Direct Borrowing, addresses concerns over the consistency of direct borrowing disclosures by government entities. As a result, the GASB has proposed a definition of “debt” to differentiate it from other long-term liabilities in the footnotes of financial statements. The Exposure Draft is expected to be approved later this month, and will have a 90-day comment period. A final GASB Statement is scheduled for next spring. Further details on the Exposure Draft are available on GASB.org.
GASB Offers Uniform Guidance on Certain Debt Extinguishment
The latest Governmental Accounting Standards Board (“GASB”) Statement establishes uniform guidance regarding certain debt repayment methods. Issued on May 15, GASB Statement No. 86, Certain Debt Extinguishment Issues, stems from Exposure Draft No. 19-25E, Certain Debt Extinguishment Issues, which was released in August. GASB Statement No. 86 offers state and local governments guidance pertaining to derecognizing debt defeased in substance. When debt is defeased in substance, debt and monetary assets placed in trust do not have to be disclosed in financial statements. However, governments must disclose information about debt defeased in substance in the financial statements’ notes. GASB Statement No. 86 also. Read More.
Jeffrey Previdi Appointed to GASB Vice Chairman
Former Standard & Poor’s Ratings Services municipal bond analyst Jeffrey Previdi has been appointed to Government Accounting Standards Board (“GASB”) vice chairman. Announced on May 17, Previdi will replace outgoing GASB member Jan Sylvis, who is retiring after serving for 10 years on the board. Previdi is expected to continue Sylvis’ outreach efforts to financial professionals and investors regarding the GASB’s standard-setting agenda. Previdi’s tenure as vice chairman begins on Saturday, July 1.