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GASB Issues Standard for Irrevocable Split-Interest Agreements

Yesterday, the Governmental Accounting Standards Board (“GASB”) issued GASB Statement No. 81, Irrevocable Split-Interest Agreements. Statement No. 81 addresses when irrevocable split-interest agreements represent an asset for reporting purposes when the resources are managed by a third party. The standard also offers guidance for situations in which the government is the asset holder. GASB Chairman David Vaudt said the guidance will lead to more consistent accounting for irrevocable split-interest agreements and give users access to more comparable information. Government entities are required to apply the new guidance retroactively for reporting periods beginning after December 15, 2016. Early application is encouraged.. Read More.

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GASB to Hold Four-Day Meeting Next Week

From Monday to Thursday next week, the Governmental Accounting Standards Board (“GASB”) will meet to discuss several topics pertinent to its current agenda. As mentioned in its Tentative Notice of Meetings , the GASB is scheduled to review the following: Feedback from the Governmental Accounting Standards Advisory Council on technical agenda projects; A ballot draft of a final Statement, Pension Issues; The financial reporting model; Debt extinguishment issues, particularly recognition issues related to defeasances using existing resources; and Results from the pre-agenda research concerning Revenue Recognition from Exchange and Exchange-Like Transactions. The first meeting is expected to start Monday afternoon at 1:00 p.m. EST.. Read More.

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GASB Statement on Blending Component Units into Financial Statements Issued

Offering guidance on how certain nonprofit component units should be disclosed in financial statements, the Governmental Accounting Standards Board (“GASB”) has issued GASB Statement No. 80, Blending Requirements for Certain Component Units. GASB Statement No. 80 clarifies the display requirements in GASB Statement No. 14, The Financial Reporting Entity, by calling for these component units to be incorporated into the main state or local government’s financial statements similarly to a department or activity under the primary government. The new guidance also focuses on reducing diversity in practice concerning the presentation of nonprofit organizations wherein the primary government is the lone. Read More.

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Highlights from GASB’s January Meeting

During a two-day meeting last month at its offices in Norwalk, Connecticut, the Governmental Accounting Standards Board (“GASB”) discussed the following topics: Leases. The GASB tentatively decided that the Exposure Draft, Leases, should include governments with principal ongoing operations consisting of leasing assets to other entities. Such governments should be required to disclose upcoming lease payments that are part of the lease receivable, presenting principal and interest separately. Blending Requirements for Certain Component Units. After reviewing a preballot draft of a final Statement, Blending Requirements for Certain Component Units, the GASB made clarifying revisions on the draft document. Irrevocable Split-Interest. Read More.

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GASB Appoints 2016 Academic Fellow

The Governmental Accounting Standards Board (“GASB”) has announced the appointment of Dr. William Baber to its Academic Fellow for 2016. Dr. Baber is a professor at Georgetown University’s McDonough School of Business, and has over 30 years of experience teaching financial and managerial accounting at various colleges and universities. Prior to his academic career, he was an auditor and consultant with a national accounting firm in Washington, D.C. Regarding Dr. Baber’s appointment, Cherry Bekaert Senior Audit Manager Melisa Galasso remarked, “I am excited to see Professor Baber’s passion for the accounting industry acknowledged with this appointment. As a former colleague, I know. Read More.

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Participants Sought for GASB Field Test

The Governmental Accounting Standards Board (“GASB”) is seeking participants for a field test of its Exposure Draft, Certain Asset Retirement Obligations . The Exposure Draft includes proposed changes to the accounting and financial reporting of certain asset retirement obligations by state and local governments. Any state or local government that reports asset retirement obligations or such entities that could be impacted by the GASB’s proposal are encouraged to participate. Specifically, the GASB wants feedback from governmental financial statement preparers on the following: Possible implementation issues; Related costs of the initial and continuing implementation of the proposed guidance; and Whether any requirements of the proposed guidance are. Read More.

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