Many of you are following the progress GASB is making in its re-examination of the reporting model developed largely from GASB 34. We at Henry+Horne are also keeping a close watch on the changes the board has tentatively decided on, in an effort to be ready for their much-anticipated exposure draft set to be released summer 2020.
At the most recent board meeting in March, GASB started discussing the use of the fund category “Special Resources Fund” to replace the currently used “Special Revenue Fund”. This is a result of the board wanting to get away from words like revenues and expenditures on the face of the governmental fund statements and move to words like inflows and outflows of resources.
We also now know when GASB is expecting governments will begin implementing the results of this upcoming standard.
- If your government reports more than $75 million in revenues at the end of your 2022 fiscal year, you will be expected to implement this in your 2024-2025 fiscal year.
- If your government reports less than $75 million in revenues at the end of your 2022 fiscal year, you will be expected to implement this in your 2025-2026 fiscal year.
The final standard is currently slated to be issued in February 2022, so you will have at least a few years to really understand all the changes that will be expected of your CAFR and/or stand alone financial statements.
For more on GASB and their ever-changing re-examination process, read this article on their prolificity.
We have prepared a one-hour webinar for anyone interested in learning more about the tentative decisions made by the board on this very important standard on May 5, 2020. Contact email@example.com for more information.
Feel free to contact your Henry+Horne tax adviser with any questions on reporting models or GASB in general.
Brian Hemmerle, CPA, CFE