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.
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 must be. 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.