GASB Update AGFOA April, 2012. Overview Statement 61 – Reporting Entity Omnibus Statement 62 –...
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GASB Update AGFOA April, 2012
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Transcript of GASB Update AGFOA April, 2012. Overview Statement 61 – Reporting Entity Omnibus Statement 62 –...
GASB UpdateAGFOA April, 2012
OverviewStatement 61 – Reporting Entity OmnibusStatement 62 – Pre-89 FASB and AICPA
PronouncementsStatement 63 – Financial Reporting of
Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Position
Statement 64 – Derivative InstrumentsStatement 65 – Elements of Financial
StatementsStatement 66 – Technical Corrections
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OtherPreliminary Views Document -
Economic Condition ReportingOMB Advance Notice
Effective For…2012
◦Statement 642013
◦Statement 61◦Statement 62◦Statement 63◦Statement 65 ◦Statement 66
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Statement 61
The Financial Reporting Entity: Omnibus
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Significant ChangesIncrease the emphasis on financial
relationshipsBlending considerationsClarify the recognition of ownership
interests in◦Joint ventures◦Component units◦ Investments
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What Does This Really Mean?Some CU’s won’t beSome CU’s will be differentFinancial vs. governanceConsider risk of being
“misleading”
Statement 62
Pre-1989 FASB and AICPA Pronouncements
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Reason for the StatementSince FASB adopted its new
codification, its original pronouncements are non-authoritative
Eliminates reference to application of pre-November 30, 1989, FASB pronouncements, unless they conflict with or contradict GASB pronouncements
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Statement 63Deferred Outflows, Deferred Inflows, and Net Position
Statement of Net Position
Deferred outflows of resources.Deferred inflows of resources. Classification – in process
Net PositionNet investment in capital assetsRestrictedUnrestricted
Disclosures
Details if not clear from face of statements.
Clarify significant impacts.
Derivative Instruments – Application of Hedge Accounting Termination Provisions – An Amendment of GASB Statement No. 53
Statement 64
Hedges and TerminationsTerminate and replaceQuestions around application of
termination provisions in GASB 53
Effective hedge remain?
Statement 65Deferrals limited to instances specifically
identified in authoritative pronouncements.
Guidance for reporting balances Reclassifies certain items as deferred
outflows of resources and deferred inflows of resources
Recognizes certain items reported as assets and liabilities as outflows of resources and inflows of resources.
SpecificsAssets Liabilities True to the definitions in
Concepts Statement 4
What Changed?Deferred gain/loss from refunding Debt issuance costsInitial direct costs of operating
leases
Major Fund CriteriaCombine assets and deferred
outflowsCombine liabilities and deferred
inflows
Statement 66Removes requirement for reporting in
General Fund or Internal Service FundAmends Statement No. 62, by modifying
the specific guidance on accounting for ◦operating lease payments that vary from a
straight-line basis, ◦ the difference between the initial investment
(purchase price) and the principal amount of a purchased loan or group of loans, and
◦servicing fees related to mortgage loans that are sold when the stated service fee rate differs significantly from a current (normal) servicing fee rate.
PV – Economic Condition Reporting
General ideaRight place to report?
OMB Advance NoticeChange in thresholdSingle Audit LiteStreamlined audit requirementsSubrecipient monitoringCompliance still requiredComment Period through 4/30
