Guidance Proposed on Capitalization of Interest Cost
The Governmental Accounting Standards Board (“GASB”) wants to update guidance on construction period interest costs. In its Exposure Draft, Accounting for Interest Cost during the Period of Construction , the GASB proposes expensing interest costs incurred during the construction period. For financial statements prepared using the current financial resources measurement focus, interest incurred during the construction period would still be categorized as an expenditure on a basis in line with governmental fund accounting principles. If approved, the finalized GASB Statement would be applied to reporting periods starting after December 15, 2018. Early application is encouraged. Comments on the Exposure Draft are due March 5, 2018.
GASB Prepping Other Postemployment Benefits Implementation Guidance
Before the year ends, the Governmental Accounting Standards Board (“GASB”) is expected to release implementation guidance regarding other postemployment benefits (“OPEB”). The guidance will cover accounting and financial reporting for OPEB, as well as address issues concerning OPEB plans. Learn more about the upcoming OPEB implementation guidance at GASB.org.
GASB Interviews New Member Kris Knight
On its YouTube channel, the Governmental Accounting Standards Board (“GASB”) has posted a video showcasing new board member Kris Knight. Kris is Delaware’s deputy secretary of state and joined the GASB in July. In the video, he discusses his current role and the challenges and opportunities the GASB face in reviewing the financial reporting model. Learn more about Kris Knight on the GASB’s YouTube channel.
GASB Planning Big Year in 2018
The Governmental Accounting Standards Board (“GASB”) has major plans for 2018. As part of its agenda for the New Year, the GASB will focus on the financial reporting model, revenue and expense recognition and notes disclosures. More about the board’s upcoming plans is available in the GASB: 2018 Look Ahead video.
GASB Infographic Describes Board Funding
For its first animated infographic, the Governmental Accounting Standards Board (“GASB”) shares how the board is funded. The infographic is available on the GASB’s YouTube channel .
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.