GASB Takes Detailed Look at Financial Reporting
The Governmental Accounting Standards Board (“GASB”) is currently working on or performing research concerning three projects to improve financial reporting for governmental entities. Two of the interrelated efforts, Financial Reporting Model Reexamination and Revenue and Expense Recognition, are currently on the GASB’s technical agenda. The third project, the Note Disclosures Reexamination, was added to the GASB’s pre-agenda research. The GASB timed each project in a staggered way to work on them in unison to be issued successively and in a timely manner. More on the financial reporting projects is available on GASB.org.
Topics: financial reporting, Financial Reporting Model Reexamination, GASB, Governmental Accounting Standards Board "GASB", Governmental Entities, Note Disclosures Reexamination Project, revenue and expense recognition
GASB Chair Discusses Postemployment Benefits
In his latest edition of “From the Chairman”, the Governmental Accounting Standards Board’s (“GASB”) David Vaudt discusses how important it is for governmental entities to calculate the discount rate for measuring the net liability for postemployment benefits. The focus of Vaudt’s letter is the long-term expected rate of return, which he considers fundamental in determining the discount rate. Vaudt says that the long-term expected rate of return must be based on the nature and combination of present and anticipated postemployment benefit investments. Check out Vaudt’s full comments on GASB.org.
James Brown and Kristopher Knight Appointed to GASB
The Financial Accounting Foundation’s Board of Trustees announced Tuesday the reappointment of James Brown to the Governmental Accounting Standards Board (“GASB”). A member of the GASB since 2012, Brown is a former partner at a regional, Missouri-based public accounting firm. He also served as the firm’s principal contact with the GASB prior to his departure. This will be Brown’s second term on the GASB. Also on Tuesday, the Board of Trustees appointed Kristopher Knight to the GASB. Knight was previously Delaware’s deputy secretary of state and the director of its Division of Corporations. He will replace outgoing member Jan Sylvis,. Read More.
New Fiduciary Activities Guidance Issued for Governments
New guidance has been issued by the Governmental Accounting Standards Board (“GASB”) on the categorization of fiduciary activities for financial reporting, how fiduciary activities are to be reported, and when liabilities to beneficiaries must be disclosed. The standard, GASB Statement No. 84 , Fiduciary Activities, provides conditions for governments to classify their fiduciary activities. These conditions include determining whether a government controls the assets of the fiduciary activity and the beneficiaries wherein a fiduciary relationship is present. Other criteria are included for recognizing fiduciary component units and postemployment benefit agreements that are fiduciary activities. Any activity that meets the criteria stated in Statement 84. Read More.
Topics: Custodial Funds, fiduciary activities, fiduciary activity reporting, GASB Statement, Governmental Accounting Standards Board "GASB", Investment Trust Funds, Pension Trust Funds, postemp, Private-purpose Trust Funds
GASB Financial Reporting Model Invitation to Comment in the Works
Governmental Accounting Standards Board (“GASB”) Chairman David Vaudt has announced plans to issue an Invitation to Comment regarding its project to improve the financial reporting model. The Invitation to Comment, Financial Reporting Model Improvements—Governmental Funds, will help the GASB collect feedback to shape its financial reporting model project. Specifically, the GASB is focused on improving: Recognition approaches; Governmental funds statement of resource flows format; Specific terminology; Reconciliation to the government-wide statements; and Statement of cash flows (for certain recognition approaches). Comments are due to the GASB on Friday, March 31. More on the Invitation to Comment is available on GASB.org.
GASB Announces New Task Force
The Governmental Accounting Standards Board (“GASB”) has announced the formation of a revenue and expense recognition task force. Appointed by Chairman David Vaudt, the 23-person task force will create an application model for reporting revenues and expenses occurring from non-exchange, exchange, and exchange-like transactions. A complete list of the revenue and expense recognition task force members is available on GASB.org.