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
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 Exceptions like short-term leases and financed purchases are given in the draft guidance, but the proposed Statement would cover lease contracts for nonfinancial assets such as vehicles, heavy equipment and buildings.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.