Government GPS

The Latest Rules and Regulations That Impact Your Government Entity

Is GASB exhausted yet?

It seems as if the Governmental Accounting Standards Board (GASB) never sleeps. I mean, they are currently working on GASB Statement No. 90 – that’s right, NUMBER 90! Of course, they are amending past GASB Pronouncements with No. 90, but still, they have made it to the 90s! I’m sure you are thinking, “When will it stop?” The short answer is never. How boring would that be – never learning new things? Although some might argue that sounds ideal, but the true purpose behind these new GASB is to benefit the reader of the financials. And you ask, “Who are the readers of the financials?” Well, that is us, we should all be reading our local government’s financial statements.

Don’t miss: How to create a meeting agenda

For some entities, it can be difficult to determine whether or not a new GASB actually applies to them. Don’t worry, there are a plethora of resources available to you. They include continuing professional education opportunities through the AICPA, your audit firm, your local society, the Governmental Finance Officer Association, and other organizations as well as own GASB’s website.

As GASB continues to issue new standards, it’s a good idea to be prepared for what’s to come because it can be exhausting and extremely time-consuming keeping up with all the changes (trust me, your auditors understand!).

Another important tip to prepare for new standards is to stay up to date on what is coming and their effective dates. Here are some of the new GASB standards that will impact you:

  • GASB Statement No. 83, Certain Asset Retirement Obligations: The requirements of this Statement are effective for reporting periods beginning after June 15, 2018.
  • GASB Statement No. 84, Fiduciary Activities: The requirements of this Statement are effective for reporting periods beginning after December 15, 2018.
  • GASB Statement No. 87, Leases: The requirements of this Statement are effective for reporting periods beginning after December 15, 2019.
  • GASB Statement No. 88, Certain Disclosures Related to Debt, including Direct Borrowings and Direct Placements: The requirements of this Statement are effective for reporting periods beginning after June 15, 2018.
  • GASB Statement No. 89, Accounting for Interest Cost Incurred before the End of a Construction Period: The requirements of this Statement are effective for reporting periods beginning after December 15, 2019.
  • GASB Statement No. 90, Majority Equity Interests – an amendment of GASB Statements No. 14 and No. 61: The requirements of this Statement are effective for reporting periods beginning after December 15, 2018.

For more information about these standards, visit GASB’s website www.gasb.org, or contact your Henry+Horne auditor who can walk you through what to expect, when to implement, and how best to implement these GASB’s for your governmental entity.

 

Cailee Lewis, CPA

Get in on the conversation.

Unfortunately, we cannot give free advice to non-clients by email, comment response, or phone call. Thank you! Read our disclaimer.