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 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.
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.
Questionnaire Issued for Actuarial Section of OPEB Plan Reports
A six-page questionnaire to complete with comprehensive annual financial reports (“CAFRs”) for other post-employment benefits (“OPEB”) plans was recently issued by the Government Finance Officers Association (“GFOA”). Questions for the Actuarial Section of an OPEB Plan’s Comprehensive Annual Financial Report replaces the actuarial section of the GFOA checklist, Postemployment benefit systems and investment pools. The GFOA advises that the new questionnaire is exclusive to the actuarial section of the CAFRs for OPEBs that have applied Governmental Accounting Standards Board Statement No. 74, Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans. An update for the entire checklist is expected soon. The questionnaire is available on the GFOA website.
General Purpose Preparer Checklist Updated
A checklist authored by the Government Finance Officers Association (“GFOA”) to help prepare comprehensive annual financial reports just received an update. General Purpose Preparer Checklist -2018 covers any pronouncements the Government Accounting Standards Board (“GASB”) has issued final documents up to GASB Statement No. 86, Certain Debt Extinguishment Issues. The updated checklist also references GASB Statement No. 84, Fiduciary Activities , even though the standard is not effective yet. One notable change to the GFOA checklist is the format. The complete list of required disclosures is replaced with a new reference tool to help locate any required disclosures in the authoritative literature. The tool will make it easier for preparers to. Read More.
Implementing GASB’s Fiduciary Activities Guidance
It has been a year since the Governmental Accounting Standards Board (“GASB”) issued GASB Statement No. 84, Fiduciary Activities , which helps classify fiduciary activities for financial reporting reasons. With the guidance going into effect for reporting periods starting after December 15, 2018, the GASB has released an article to help state and local governments prepare for implementing the new requirements. Visit GASB.org to read more about implementing the new fiduciary activities guidance.