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.
GASB Offers Implementation Guidance on Leases Standard
The Governmental Accounting Standards Board’s (“GASB”) leases standard goes into effect late next year, but the board urges state and local governments to start the implementation planning process now. Issued last June, GASB Statement No. 87, Leases, significantly changes how governments report leases on their financial statements. To assist governments, the GASB has published implementation guidance concerning GASB Statement No. 87. Read all about it at GASB.org.
GASB Statement on Debt Disclosures Issued
A new Statement by the Governmental Accounting Standards Board (“GASB”) is aimed to improve debt disclosures in financial statement notes, such as those related to direct borrowings and direct placements. Issued as GASB Statement No. 88, Certain Disclosures Related to Debt, including Direct Borrowings and Direct Placements, the standard lists which liabilities governments should document in their disclosures associated with debt. The new guidance requires all debt disclosures should separate direct borrowings and direct placements of debt from other debt types. This requirement is due to direct borrowings and direct placements potentially exposing a government to risks different from or additional to risks associated with other debt types. For disclosure purposes, GASB Statement No. 88. Read More.
GASB Article Focuses on Leases Standard
The Governmental Accounting Standards Board (“GASB”) has published an article on GASB Statement No. 87, Leases. Titled “Understanding Costs and Benefits,” the article covers the board’s assessment of the likely costs and benefits of its leases standard. The article also discusses how the GASB concluded that the expected benefits validate the costs, explains the board’s due process in approving Statement 87, and summarizes how governments should apply Statement 87. Issued in June 2017, GASB Statement No. 87 introduces a simplified approach to accounting for and disclosing leases by state and local governmental entities. The GASB based its standard on the belief that leases are. Read More.
GASB Seeks Feedback on Revenue and Expense Recognition Models
In its recently issued Invitation to Comment, Revenue and Expense Recognition, the Governmental Accounting Standards Board (“GASB”) requests feedback on a new revenue and expense recognition model. This comprehensive model would help state and local governments address various transactions and improve their comparisons of transaction accounting and reporting. The model will also provide financial report users more insightful information for making decisions and evaluating accountability. The Invitation to Comment discusses the following two models: Exchange/Nonexchange Model: This model’s classification process is based on the current definition of exchange transactions. The model’s recognition process would rely on current guidance for nonexchange. Read More.
Implementation Guide on Other Postemployment Benefits Issued
A recently issued Implementation Guide by the Governmental Accounting Standards Board (“GASB”) offers guidance with GASB Statements regarding other postemployment benefits (“OPEB”). The guide, Implementation Guide No. 2017-3 , Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions (and Certain Issues Related to OPEB Plan Reporting), answers questions related to the requirements under GASB Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions. Also addressed are several issues concerning GASB Statement No. 74, Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans. Download Implementation Guide No. 2017-3 from GASB.org.