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
GASB Issues Exposure Draft on Debt Disclosures
On Wednesday, the Governmental Accounting Standards Board (“GASB”) released an exposure draft that proposes guidance to improve debt-related disclosures in financial statements. Issued as Certain Disclosures Related to Debt, including Direct Borrowings and Direct Placements , the Exposure Draft offers guidance that would state which liabilities governments must disclose in their financial statements. Such liabilities include direct borrowings and direct placements. The proposed guidance would describe debt for disclosure purposes as a liability arising from a contractual requirement to pay cash or other assets to resolve a fixed amount at the date of the established contractual obligation. Leases and trade accounts payable would receive exemption from the guidance. In addition, the new. Read More.
New GASB Statement on Leases Issued
The Governmental Accounting Standards Board (“GASB”) has issued a new single model to help state and local governments report leasing agreements. GASB Statement (“GASBS”) No. 87, Leases, categorizes leases as financing arrangements that allow customers to use the leased asset. Per the standard, governments that act as lessees must report a liability for the contract, as well as report an intangible asset indicating their ability to use the leased item. For government entities that are lessors, they must disclose a receivable for the lease and a deferred inflow of resources. Nonfinancial assets such as vehicles, heavy equipment, and property are. Read More.
GASB Issues New Implementation Guidance
Earlier this week, the Governmental Accounting Standards Board (“GASB”) published Implementation Guide No. 2017-1, Implementation Guidance Update–2017 . The guidance update addresses questions concerning recent GASB-issued standards and implementation issues. The update also replaces previously issued guidance, and features new questions and answers on the following matters: Cash flow reporting in regard to changes in an employer’s liability to employees for defined benefit pensions or defined benefit postemployment benefits other than pensions (“OPEB”) and an employer’s deferred outflows of resources and deferred inflows of resources related to pensions or OPEB The Financial Reporting Entity Pensions—Employer and Plan Accounting and Reporting Accounting and Financial Reporting for Certain Investments. Read More.
GASB Statement 85 Addresses Various Practice Issues
The Governmental Accounting Standards Board (“GASB”) has issued GASB Statement No. 85, Omnibus 2017, to address the following accounting and financial reporting matters: Merging a component unit when the main government is a business activity being disclosed in a single column for financial reporting purposes. Disclosing amounts that were previously reported as goodwill and negative goodwill. Categorizing real estate held by insurance companies. Assessing specific money market investments and contributing interest-earning investment contracts at amortized cost. Timing of the assessment of pension and other postemployment benefits (“OPEB”) liabilities, and associated expenditures identified in financial statements that are prepared with the. Read More.
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.