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Future Accounting Standard Changes - Continued <br />GASB Statement No. 68 - The Accounting and Financial Reporting of Pensions- an Amendment of GASB Statement No. 27 <br />The primary objective of this Statement is to improve accounting and financial reporting by state and local governments for <br />pensions. It also improves information provided by state and local governmental employers about financial support for pensions <br />that is provided by other entities. This Statement results from a comprehensive review of the effectiveness of existing standards of <br />accounting and financial reporting for pensions with regard to providing decision -useful information, supporting assessments of <br />accountability and interperiod equity, and creating additional transparency. <br />This Statement replaces the requirements of Statement No. 27, Accounting for Pensions by State and Local Governmental <br />Employers, as well as the requirements of Statement No. 50, Pension Disclosures, as they relate to pensions that are provided <br />through pension plans administered as trusts or equivalent arrangements (hereafter jointly referred to as trusts) that meet certain <br />criteria. The requirements of Statements 27 and 50 remain applicable for pensions that are not covered by the scope of this <br />Statement. <br />This Statement is effective for fiscal years beginning after June 15, 2014. Earlier application is encouraged. <br />How the Changes in This Statement Will Improve Financial Reporting <br />The requirements of this Statement will improve the decision -usefulness of information in employer and governmental <br />nonemployer contributing entity fmancial reports and will enhance its value for assessing accountability and interperiod equity by <br />requiring recognition of the entire net pension liability and a more comprehensive measure of pension expense. Decision - <br />usefulness and accountability also will be enhanced through new note disclosures and required supplementary information. <br />GASB Statement No. 69 - Government Combinations and Disposals of Government Operations <br />Summary <br />This Statement establishes accounting and financial reporting standards related to government combinations and disposals of <br />government operations. As used in this Statement, the term government combinations include a variety of transactions referred to <br />as mergers, acquisitions, and transfers of operations. <br />The distinction between a govenrunent merger and a government acquisition is based upon whether an exchange of significant <br />consideration is present within the combination transaction. Government mergers include combinations of legally separate entities <br />without the exchange of significant consideration. This Statement requires the use of carrying values to measure the assets and <br />liabilities in a government merger. Conversely, government acquisitions are transactions in which a government acquires another <br />entity, or its operations, in exchange for significant consideration. This Statement requires measurements of assets acquired and <br />liabilities assumed generally to be based upon their acquisition values. This Statement also provides guidance for transfers of <br />operations that do not constitute entire legally separate entities and in which no significant consideration is exchanged. This <br />Statement defines the term operations for purposes of determining the applicability of this Statement and requires the use of <br />carrying values to measure the assets and liabilities in a transfer of operations. <br />A disposal of a government's operations results in the removal of specific activities of a government. This Statement provides <br />accounting and financial reporting guidance for disposals of government operations that have been transferred or sold. <br />This Statement requires disclosures to be made about government combinations and disposals of government operations to enable <br />financial statement users to evaluate the nature and financial effects of those transactions. <br />The requirements of this Statement are effective for government combinations and disposals of government operations occurring <br />in financial reporting periods beginning after December 15, 2013, and should be applied on a prospective basis. Earlier <br />application is encouraged. <br />How the Changes in This Statement Will Improve Financial Reporting <br />Until now, governments have accounted for mergers, acquisitions, and transfers of operations by analogizing to accounting and <br />financial reporting guidance intended for the business environment, generally APB Opinion No. 16, Business Combinations. This <br />Statement provides specific accounting and financial reporting guidance for combinations in the governmental <br />environment. This Statement also improves the decision usefulness of financial reporting by requiring that <br />disclosures be made by governments about combination arrangements in which they engage and for disposals of People <br />government operations. +Process. <br />Gong <br />Beyondthe <br />-8- Numbers <br />