GASB Issues Statement on Interest Cost Incurred Before End of Construction Period
The Governmental Accounting Standards Board (“GASB”) has released GASB Statement No. 89, Accounting for Interest Cost Incurred before the End of a Construction Period , which aims to improve the significance and comparability of information on capital assets and borrowing costs for a reporting period. GASB Statement No. 89 also streamlines the accounting for interest cost incurred prior to the end of a construction period. For governments that use the economic resources measurement focus to prepare financial statements, interest cost incurred prior to a construction period’s end must be labeled as an expense during the period wherein the cost is incurred. The interest cost should not be capitalized with the historical cost of a capital asset. For. Read More.
FASB Amends Guidance for Reporting Pension Costs
Later this year, some companies will be required to change the way they present expenses related to retirement benefits. The Financial Accounting Standards Board (“FASB”) has issued Accounting Standards Update (“ASU”) No. 2017-07, Compensation—Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost, which is intended to improve the presentation of pension costs. The amended guidance requires companies to report expenses for employees’ pensions under the same line as other compensation costs. The other pension-related expenses mentioned in FASB ASC 715-30-35-04, Compensation—Retirement Benefits — Defined Benefit Plans — Pension — Subsequent Measurement . Read More.
Topics: Accounting Standards Codification, Accounting Standards Update, Compensation—Retirement Benefits (Topic 715), Defined Benefit Plans, FASB, Financial Accounting Standards Board "FASB", Interest Costs, Net Periodic Pension Costs, Statement of Financial Accounting Standards