GASB Offers Implementation Guidance on Leases Standard
The Governmental Accounting Standards Board’s (“GASB”) leases standard goes into effect late next year, but the board urges state and local governments to start the implementation planning process now. Issued last June, GASB Statement No. 87, Leases, significantly changes how governments report leases on their financial statements. To assist governments, the GASB has published implementation guidance concerning GASB Statement No. 87. Read all about it at GASB.org.
GASB Statement on Debt Disclosures Issued
A new Statement by the Governmental Accounting Standards Board (“GASB”) is aimed to improve debt disclosures in financial statement notes, such as those related to direct borrowings and direct placements. Issued as GASB Statement No. 88, Certain Disclosures Related to Debt, including Direct Borrowings and Direct Placements, the standard lists which liabilities governments should document in their disclosures associated with debt. The new guidance requires all debt disclosures should separate direct borrowings and direct placements of debt from other debt types. This requirement is due to direct borrowings and direct placements potentially exposing a government to risks different from or additional to risks associated with other debt types. For disclosure purposes, GASB Statement No. 88. Read More.
GASB Article Focuses on Leases Standard
The Governmental Accounting Standards Board (“GASB”) has published an article on GASB Statement No. 87, Leases. Titled “Understanding Costs and Benefits,” the article covers the board’s assessment of the likely costs and benefits of its leases standard. The article also discusses how the GASB concluded that the expected benefits validate the costs, explains the board’s due process in approving Statement 87, and summarizes how governments should apply Statement 87. Issued in June 2017, GASB Statement No. 87 introduces a simplified approach to accounting for and disclosing leases by state and local governmental entities. The GASB based its standard on the belief that leases are. Read More.
Implementation Guide on Other Postemployment Benefits Issued
A recently issued Implementation Guide by the Governmental Accounting Standards Board (“GASB”) offers guidance with GASB Statements regarding other postemployment benefits (“OPEB”). The guide, Implementation Guide No. 2017-3 , Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions (and Certain Issues Related to OPEB Plan Reporting), answers questions related to the requirements under GASB Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions. Also addressed are several issues concerning GASB Statement No. 74, Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans. Download Implementation Guide No. 2017-3 from GASB.org.
GASB Proposes Updated Implementation Guide
The Governmental Accounting Standards Board (“GASB”) is proposing an Implementation Guide update to help clarify and explain GASB Statements concerning topics such as pensions, tax abatements, cash flow reporting, and management discussions and analysis. Issued as an Exposure Draft, Implementation Guide No. 201Y-X, Implementation Guidance Update—201Y, would amend Implementation Guide No. 2015-1, Questions 1.65.4, 2.14.1, 5.97.2, 5.192.1, 7.9.2, 7.24.7, and 9.24.4, and Implementation Guide No. 2016-1, Implementation Guidance Update—2016, Question 4.77. Comments on the Exposure Draft are due Friday, February 16.
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.