AICPA Committee Issues Revised Exposure Draft on Independence Requirements for Governments
The Professional Ethics Executive Committee of the American Institute of Certified Public Accountants (“AICPA”) has issued a revised exposure draft on the independence requirements for state and local governments. Published as Proposed Interpretation: State and Local Government Client Affiliations (formerly Entities Included in State and Local Government Financial Statements) , the exposure draft features significant changes to the original July 2017 proposal, which aims to replace current interpretive guidance in “Entities Included in State and Local Government Financial Statements.” The AICPA is proposing the amendments to address concerns regarding an accountant’s independence on a financial statement attest client that is a state or local government entity. Since existing interpretation does not specify when accountants should review the “Conceptual. Read More.
Proposal to Address Questions on GASB Standards
The Governmental Accounting Standards Board (“GASB”) has proposed new implementation guidance that addresses questions concerning GASB standards such as cash flow reporting, derivative instruments, and post-employment benefits. Issued as Exposure Draft No. 24-16d, Implementation Guidance Update — 2019, the proposed guidance is presented in a question-and-answer format and helps answer questions like how an entity should disclose on cash flow statements resources given in an irrevocable split-interest agreement. The proposal also calls for changes to previously issued implementation guidance and provides answers to questions regarding details related to GASB Statement No. 67, Financial Reporting for Pension Plans, and GASB Statement. Read More.
GASB Task Force to Review Financial Reporting by Native American Tribes
The Governmental Accounting Standards Board (“GASB”) has formed a task force responsible for examining financial reporting options for Native American tribes. Several tribes rely on the GASB’s guidance regarding any issues they come across. Task force members were chosen due to their knowledge of tribal accounting. Members of the task force are as follows: Heather Acker, Baker Tilly Virchow Krause LLP partner Lacey Horn, Cherokee Nation treasurer Christopher Lee, Key Bank vice president—head of government credit Paul Mansour, Conning Holdings Ltd. managing director and head of municipal research Hattie Mitchell, Native American insurance company AMERIND Risk director of finance and. Read More.
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 .
GASB Issues Guidance on Majority Equity Interests
Last month, the Governmental Accounting Standards Board (“GASB”) issued new guidance to help state and local governments with their treatment of equity interests for financial reporting purposes. According to GASB Statement No. 90, Majority Equity Interests, a government entity’s majority equity interest in a legally separate business must be disclosed as an investment if the equity interest meets the definition of an investment. Statement No. 90 is effective for reporting periods starting after December 15, 2018. Early application is encouraged. More on Statement No. 90 is available in the GASB press release.
Government Accountability Office Revises Yellow Book Standards
The U.S. Government Accountability Office (“GAO”) has updated its generally accepted government auditing standards to improve the quality of governmental audits. Commonly known as the “Yellow Book,” the revised standards supersede their 2011 counterparts and provide transparency and accountability for auditors when providing the public with unbiased analysis and information. Some of the changes include reformatting the chapters that distinguish requirements from application guidance, adding a definition for waste and related examples, and specific considerations for when internal control is significant to the audit objectives for performance audits. The revised standards must be applied to financial audits, attestation engagements, and. Read More.