GASB Proposes Single Approach for Lease Reporting
The Governmental Accounting Standards Board (“GASB”) has issued a proposal that would create a single model for state and local governments to report leases on their financial statements. The approach would be based on the notion that leases are financings of the right to use an underlying asset. Exceptions like short-term leases and financed purchases are given in the draft guidance, but the proposed Statement would cover lease contracts for nonfinancial assets such as vehicles, heavy equipment and buildings. Grants, donated assets and leases of intangible assets, however, would be excluded from the guidance. Per the Exposure Draft, Leases , a lessee government. Read More.
GASB to Review Ballot Drafts on Monday
Starting at 1:00 p.m. EST, Monday, the Governmental Accounting Standards Board (“GASB”) is scheduled to hold a teleconference. Per the GASB Notice of Teleconference , the GASB plans to consider for approval the ballot drafts of an exposure draft for the proposed Statement, Leases, and a final statement, Blending Requirements for Certain Component Units. Live audio of the teleconference will be provided on the GASB Web site.
Standard Issued for Certain Multiple-Employer Pension Plans
The Governmental Accounting Standards Board (“GASB”) has issued GASB Statement (GASBS) No. 78, Pensions Provided Through Certain Multiple-Employer Defined Benefit Pension Plans, to assist participants of some private or federal multiple-employer pension plans. Addressing the employer accounting and financial reporting disclosures for pension plans, the standard is intended to help state or local governments participating in multi-employer plans with the implementation of GASBS No. 68, Accounting and Financial Reporting for Pensions. GASBS No. 78 excludes several pensions available to governmental employees through a cost-sharing, multiple-employer pension plan from applying GASBS No. 68. The GASB said the exclusion is necessary due. Read More.
Measurement Date Clarity Requested for Reporting Pension Liabilities
As state and local governments prepare financial reports for their pension plans to comply with Government Accounting Standards Board (“GASB”) Statement No. 67, Financial Reporting for Pension Plans—an amendment of GASB Statement No. 25, and No. 68, Accounting and Financial Reporting for Pensions, several accountants are still confused which measurement date to use for recording liabilities. The issue was a hot topic among attendees at this week’s Government Accounting and Auditing Update Conference, attended by Cherry Bekaert Partner Patricia Pryor . Discussing the matter, conference attendee Jeff Markert remarked that state and local governments are confused about which date to use because. Read More.