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.
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.
Topics: Blending Requirements for Certain Component Units, Debt Extinguishment, financial reporting, Governmental Accounting Standards Board "GASB", Implementation Guide 20XX-XX, Irrevocable Split-Interest Agreements, lease accounting