GASB Seeks Comments on Conduit Debt Obligations Proposal
There is still time to submit comments regarding the Governmental Accounting Standards Board’s (“GASB”) proposed Statement to streamline how government issuers disclose conduit debt obligations. In the Exposure Draft, Conduit Debt Obligations, the GASB offers a single method for reporting such obligations and eliminating diversity in practice. The proposal also offers accounting guidance when there are additional commitments given by government issuers and addresses a topic not addressed by GASB 87, Leases. Comments on the proposal are due Friday, November 2. For more on this Exposure Draft, read the press release .
Guidance Proposed on Capitalization of Interest Cost
The Governmental Accounting Standards Board (“GASB”) wants to update guidance on construction period interest costs. In its Exposure Draft, Accounting for Interest Cost during the Period of Construction , the GASB proposes expensing interest costs incurred during the construction period. For financial statements prepared using the current financial resources measurement focus, interest incurred during the construction period would still be categorized as an expenditure on a basis in line with governmental fund accounting principles. If approved, the finalized GASB Statement would be applied to reporting periods starting after December 15, 2018. Early application is encouraged. Comments on the Exposure Draft are due March 5, 2018.