Presentation on theme: "GASB Update AGFOA April, 2012. Overview Statement 61 – Reporting Entity Omnibus Statement 62 – Pre-89 FASB and AICPA Pronouncements Statement 63 – Financial."— Presentation transcript:
GASB Update AGFOA April, 2012
Overview Statement 61 – Reporting Entity Omnibus Statement 62 – Pre-89 FASB and AICPA Pronouncements Statement 63 – Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Position Statement 64 – Derivative Instruments Statement 65 – Elements of Financial Statements Statement 66 – Technical Corrections
Statement 61 The Financial Reporting Entity: Omnibus 5
Significant Changes Increase the emphasis on financial relationships Blending considerations Clarify the recognition of ownership interests in ◦ Joint ventures ◦ Component units ◦ Investments 6
What Does This Really Mean? Some CU’s won’t be Some CU’s will be different Financial vs. governance Consider risk of being “misleading”
Statement 62 Pre-1989 FASB and AICPA Pronouncements 8
Reason for the Statement Since 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 9
Statement 63 Deferred Outflows, Deferred Inflows, and Net Position
Statement of Net Position Deferred outflows of resources. Deferred inflows of resources. Classification – in process
Net Position Net investment in capital assets Restricted Unrestricted
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 Terminations Terminate and replace Questions around application of termination provisions in GASB 53 Effective hedge remain?
Statement 65 Deferrals 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.
Specifics Assets Liabilities True to the definitions in Concepts Statement 4
What Changed? Deferred gain/loss from refunding Debt issuance costs Initial direct costs of operating leases
Major Fund Criteria Combine assets and deferred outflows Combine liabilities and deferred inflows
Statement 66 Removes requirement for reporting in General Fund or Internal Service Fund Amends 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 idea Right place to report?
OMB Advance Notice Change in threshold Single Audit Lite Streamlined audit requirements Subrecipient monitoring Compliance still required Comment Period through 4/30