GASB Releases Fiduciary Activities Article
The Governmental Accounting Standards Board (“GASB”) recently published an article covering its new guidance for governmental entities to help identify fiduciary activities, and determine whether and how business-type activities must report fiduciary activities. The article, Statement 84: Understanding Costs and Benefits: Fiduciary Activities, explains the board’s assessment of the expected costs and benefits of GASB Statement No. 84, Fiduciary Activities, and how the GASB concluded that the expected benefits exceed the cost. In addition, the article covers the board’s due process in implementing GASB Statement No. 84 and summarizes the standard’s costs and benefits.
GASB Issues Exposure Draft on Majority Equity Interests
New accounting and financial reporting guidance could be on the way for state and local governments with a majority equity interest in an organization that is legally separate following acquisition. In its recently issued Exposure Draft, Accounting and Financial Reporting for Majority Equity Interests, the Governmental Accounting Standards Board (“GASB”) proposes that a government’s majority equity interest in a legally separate organization could be disclosed as an investment if the equity interest falls under the board’s definition of an investment. The equity method would be applied to majority equity interests that fit the definition of an investment, with the exception of certain situations. If a majority equity interest in a. Read More.
Revised White Paper Issued on Governmental and Business Financial Reporting
Helping distinguish between governmental and business financial reporting, a revised White Paper has been issued by the Governmental Accounting Standards Board (“GASB”). The White Paper, Updated: Why Governmental Accounting and Financial Reporting Is—and Should Be—Different , elaborates that the difference between governmental accounting and reporting standards and the standards for for-profit businesses require independent standards so that the information provided meets the needs of stakeholders when assessing government accountability, as well as to help make political, social and economic decisions. The White Paper also provides guidance on specific questions that typically arise regarding why general purpose governments cannot use accounting standards developed for for-profit businesses. Download the White Paper from the GASB website.
FAF Trustees Continue GASB Scope of Authority Policy
The Financial Accounting Foundation’s (“FAF”) Board of Trustees recently approved the continuation of the Governmental Accounting Standards Board’s (“GASB”) scope of authority policy. The report, Three-Year Review of GASB Scope of Authority: Consultation Process Policy, offers the GASB and FAF’s Standard-Setting Process Oversight Committee a pre-agenda consultation roadmap for deciding whether information the GASB considers for standard-setting purposes fits the board’s standard-setting mission. The report also orders the FAF to assess the consultation process three years after implementation.
GASB Issues Exposure Draft for Postemployment Benefits
Proposing implementation guidance regarding postemployment benefits, the Governmental Accounting Standards Board (“GASB”) has released the exposure draft, Implementation Guide No. 201X-Z: Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions (and Certain Issues Related to OPEB Plan Reporting). The proposal aims to offer guidance on the requirements under GASB Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions, as amended, and GASB Statement No. 74, Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans. It also features rules that would eliminate transition-related guidance at the end of the transition period for GASB Statement No.. Read More.
Topics: GASB, GASB Statement, GASB Statement No. 74, GASB Statement No. 75, Governmental Accounting Standards Board "GASB", Implementation Guide, Other Postemployment Benefits "OPEB", Postemployment Benefits
AICPA Publishes New Technical Questions and Answers
The following Technical Questions and Answers guidance was issued by the American Institute of Certified Public Accountants (“AICPA”) under Section 9160, Other Reporting Issues: Section 9160.31, Following Accounting Standards as Promulgated by FASB by a State or Local Governmental Entity. Section 9160.31 covers how an auditor should decide whether a government entity is following the applicable accounting standards. Section 9160.32, Reporting on Accounting Standards as Promulgated by FASB by a State or Local Government. Section 9160.32 offers guidance on how an auditor should report on a government entity’s financial statements, when the entity prepares its financial statements under the Financial. Read More.
Topics: AICPA, American Institute of Certified Public Accountants "AICPA", FASB, Financial Accounting Standards Board "FASB", GASB, Governmental Accounting Standards Board "GASB", state and local governments, Technical Questions & Answers, U.S. GAAP