GASB Issues Exposure Draft for Postemployment Benefits
Proposing implementation guidance regarding postemployment benefits, the Governmental Accounting Standards Board (“GASB”) has released the exposure draft, Implementation Guide No. 201X-Z: Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions (and Certain Issues Related to OPEB Plan Reporting). The proposal aims to offer guidance on the requirements under GASB Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions, as amended, and GASB Statement No. 74, Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans. It also features rules that would eliminate transition-related guidance at the end of the transition period for GASB Statement No.. Read More.
Topics: GASB, GASB Statement, GASB Statement No. 74, GASB Statement No. 75, Governmental Accounting Standards Board "GASB", Implementation Guide, Other Postemployment Benefits "OPEB", Postemployment Benefits
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.
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.
GASB Issues New Implementation Guidance
Earlier this week, the Governmental Accounting Standards Board (“GASB”) published Implementation Guide No. 2017-1, Implementation Guidance Update–2017 . The guidance update addresses questions concerning recent GASB-issued standards and implementation issues. The update also replaces previously issued guidance, and features new questions and answers on the following matters: Cash flow reporting in regard to changes in an employer’s liability to employees for defined benefit pensions or defined benefit postemployment benefits other than pensions (“OPEB”) and an employer’s deferred outflows of resources and deferred inflows of resources related to pensions or OPEB The Financial Reporting Entity Pensions—Employer and Plan Accounting and Reporting Accounting and Financial Reporting for Certain Investments. Read More.
GASB Statement 85 Addresses Various Practice Issues
The Governmental Accounting Standards Board (“GASB”) has issued GASB Statement No. 85, Omnibus 2017, to address the following accounting and financial reporting matters: Merging a component unit when the main government is a business activity being disclosed in a single column for financial reporting purposes. Disclosing amounts that were previously reported as goodwill and negative goodwill. Categorizing real estate held by insurance companies. Assessing specific money market investments and contributing interest-earning investment contracts at amortized cost. Timing of the assessment of pension and other postemployment benefits (“OPEB”) liabilities, and associated expenditures identified in financial statements that are prepared with the. Read More.