New Fiduciary Activities Guidance Issued for Governments
New guidance has been issued by the Governmental Accounting Standards Board (“GASB”) on the categorization of fiduciary activities for financial reporting, how fiduciary activities are to be reported, and when liabilities to beneficiaries must be disclosed. The standard, GASB Statement No. 84 , Fiduciary Activities, provides conditions for governments to classify their fiduciary activities. These conditions include determining whether a government controls the assets of the fiduciary activity and the beneficiaries wherein a fiduciary relationship is present. Other criteria are included for recognizing fiduciary component units and postemployment benefit agreements that are fiduciary activities. Any activity that meets the criteria stated in Statement 84. Read More.
Topics: Custodial Funds, fiduciary activities, fiduciary activity reporting, GASB Statement, Governmental Accounting Standards Board "GASB", Investment Trust Funds, Pension Trust Funds, postemp, Private-purpose Trust Funds
GASB Issues Statement on Asset Retirement Obligations
State and local governments seeking clear and consistent direction on asset retirement obligations received help this week in the form of Governmental Accounting Standards Board (“GASB”) Statement No. 83, Certain Asset Retirement Obligations. The new standard provides governmental entities accounting and financial reporting guidance for determining liabilities and corresponding deferred outflow of resources associated with asset retirement obligations. Per the guidance, an entity legally obligated to carry out future asset retirement activities associated with its tangible capital assets must recognize a liability and a corresponding deferred outflow of resources. GASB Statement 83 also lists the situations that cause these transactions to. Read More.
GASB Issues Proposed Implementation Guide
The Governmental Accounting Standards Board (“GASB”) seeks feedback on a proposed Implementation Guide to help clarify recent GASB Statements. Issued Wednesday, the proposed guide addresses the GASB’s latest accounting and reporting guidance involving pensions, cash flow statements, certain investments, external investment pools, tax abatements, and other topics. Also included in the guide are amendments to preceding implementation guidance. Comments on the Exposure Draft of Implementation Guide No. 201X-Y, Implementation Guidance Update—201X , are due Tuesday, January 31.
Review Says GASB Statement on Fund Balance Reporting Achieves Purpose
A Post-Implementation Review (“PIR”) of the expected benefits of Governmental Accounting Standards Board (“GASB”) Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions, has determined that the standard achieves its purpose. In a report this week, the PIR team reached the following conclusions on the 2009-issued statement: Statement No. 54 resolved the key issues underlying its need, such as introducing clearer fund balance classifications and fund type definitions. Despite some reported difficulty in differentiating between committed and assigned fund balanced, the statement is viewed as an improvement from previous literature. The statement offers financial statement users with beneficial. Read More.
Implementation Guidance Proposed for OPEB Plans
An Exposure Draft has been issued on a proposed Implementation Guide aimed to clarify the requirements of Governmental Accounting Standards Board (“GASB”) Statement No. 74, Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans. The GASB’s proposed Implementation Guide features over 150 questions regarding the new standards on financial reporting for other postemployment benefit (“OPEB”) plans. The Exposure Draft for Implementation Guide No. 201X-X, Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans , can be accessed on GASB.org. Comments are being accepted through Monday, December 19.
GASB Statement on Pollution Remediation Helps Financial Statement Users
A Post Implementation Review (“PIR”) by the Governmental Accounting Standards Board (“GASB”) has determined that GASB Statement No. 49, Accounting and Financial Reporting for Pollution Remediation Obligations, achieves its purpose of offering more reliable reporting of a government’s pollution remediation obligations. According to the PIR team, GASB Statement No. 49 resolves the main issues causing its stated need and provides financial statement users with valuable information. In addition, GASB Statement No. 49 attained its expected benefits, and no standard-setting process recommendations were offered. More on the Post Implementation Review of GASB Statement No. 49 is available in the news release.