How Do I Measure Thee? Let Me Count the Ways…
In March, the Governmental Accounting Standards Board (“GASB”) issued Concepts Statement No. 6, Measurement of Elements of Financial Statements. Concepts Statements do not set accounting or financial reporting standards; they provide objectives and principles which GASB can use as a basis for establishing consistent accounting and financial reporting standards in the future. Any existing standards which are inconsistent with this statement are not changed by this statement. So, just how many ways are there to measure an asset or liability? First, there are two measurement approaches: Initial-Transaction-Date-Based (“initial amount”): Measurement is based on the transaction price or amount assigned when. Read More.
GASB Proposes Drafts on Pension Plan and Health Benefits
Expected to be released in mid-June, the Governmental Accounting Standards Board (“GASB”) has proposed three new exposure draft proposals. Voted on at the GASB’s recent meeting, two of the exposure drafts would improve state and local governments’ financial reporting for other postemployment benefits (OPEB), like retiree health insurance. Per the two OPEB drafts, governments would also be obligated to list net OPEB liabilities on their financial statements similar to the treatment for pensions under GASB 68. This is expected to improve the understanding of OPEB commitments from what government employers currently offer. The OPEB exposure drafts feature: Accounting and Financial. Read More.
AICPA’s SLGEP & Audit and Attest Standards Team Release New Auditing Interpretations
After hosting multiple discussions concerning the issues facing accounting and auditing implementation for government pension plans and participants, and their auditors due to the Governmental Accounting Standards Board’s (“GASB”) recent pension accounting standards, the American Institute of Certified Public Accountants (“AICPA”) State and Local Governments Expert Panel (“SLGEP”) and AICPA Audit and Attest Standards Team have come together to issue three auditing interpretations for guidance. The three audit interpretations are as follows: Interpretation No. 2, “Auditor of Participating Employer in a Governmental Cost-Sharing Multiple-Employer Pension Plan,” of AU-C section 500, Audit Evidence: This interpretation clarifies the audited financial statements of. Read More.
GASB Proposes Exposure Draft on Fair Value
To address fair value measurement accounting and financial reporting matters, the Governmental Accounting Standards Board (“GASB”) has issued an exposure draft for public comment. Entitled Fair Value Measurement and Application, the exposure draft explains how fair value is to be defined, assets and liabilities to be determined, and what information regarding fair value should be mentioned in financial statements. The GASB’s goal is to define fair value as the price that would be accepted to sell an asset or paid to shift a liability in a transaction between market participants at the date of measurement. Comments regarding Fair Value Measurement. Read More.
FAF’s Annual Report Shares Upcoming Plans
Released late last week, the Financial Accounting Foundation’s (“FAF”; “the Foundation”) 2013 Annual Report details future plans for the Foundation, the Financial Accounting Standards Board (“FASB”) and Governmental Accounting Standards Board (“GASB”). Named “The Road Ahead”, the report features a thorough overview of last year’s achievements by the FAF, FASB and GASB, and talks about their plans ahead. The Foundation’s plans for the FASB and GASB consist of: Guiding the FASB forward after its current projects with the International Accounting Standards Board (“IASB”) are done; Encouraging a global standard-setting environment where the FASB continues its efforts with the IASB and. Read More.
Next FAF Quarterly Meeting Set for May 21st
Providing updates to the Foundation’s trustees, the Financial Accounting Foundation (“FAF”; “the Foundation”) will hold its quarterly meeting on May 21st. Taking place in Washington D.C., the meeting will discuss recent accounting standard-setting happenings by the Financial Accounting Standards Board (“FASB”) and Governmental Accounting Standards Board (“GASB”). FAF Chairman Jeffrey Diermeier, and President and CEO Teresa Polley, FASB Chairman Russell Golden and GASB Chairman David Vaudt are scheduled to share their reports, as well as the FAF’s Standard-Setting Process Oversight Committee Chairman and treasurer. Along with the updates, the Foundation plans to review concerns over its estimated $3 million donation. Read More.