GASB Statement on Blending Component Units into Financial Statements Issued
Offering guidance on how certain nonprofit component units should be disclosed in financial statements, the Governmental Accounting Standards Board (“GASB”) has issued GASB Statement No. 80, Blending Requirements for Certain Component Units. GASB Statement No. 80 clarifies the display requirements in GASB Statement No. 14, The Financial Reporting Entity, by calling for these component units to be incorporated into the main state or local government’s financial statements similarly to a department or activity under the primary government. The new guidance also focuses on reducing diversity in practice concerning the presentation of nonprofit organizations wherein the primary government is the lone. Read More.
Highlights from GASB’s January Meeting
During a two-day meeting last month at its offices in Norwalk, Connecticut, the Governmental Accounting Standards Board (“GASB”) discussed the following topics: Leases. The GASB tentatively decided that the Exposure Draft, Leases, should include governments with principal ongoing operations consisting of leasing assets to other entities. Such governments should be required to disclose upcoming lease payments that are part of the lease receivable, presenting principal and interest separately. Blending Requirements for Certain Component Units. After reviewing a preballot draft of a final Statement, Blending Requirements for Certain Component Units, the GASB made clarifying revisions on the draft document. Irrevocable Split-Interest. Read More.
Topics: Blending Requirements for Certain Component Units, Debt Extinguishment, financial reporting, Governmental Accounting Standards Board "GASB", Implementation Guide 20XX-XX, Irrevocable Split-Interest Agreements, lease accounting