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ACCOUNTING STANDARDS UPDATE <br />APPENDIX B <br />The following is a summary of statements of accounting principles issued by the Governmental <br />Accounting Standards Board (GASB). <br />GASB No. 16 Accounting For Compensated Absences <br />This Statement was issued in November, 1992 and provides guidance for the measurement of <br />accrued compensated absences liabilities by state and local governmental entities, regardless of <br />the reporting model or fund type used to report the transactions. Compensated absences are <br />absences for which employees will be paid, such as vacation, sick leave, and sabbatical leave. <br />This Statement requires the compensated absences liability generally to be measured using the <br />pay or salary rates in effect at the balance sheet date. It also requires additional amounts to be <br />accrued for certain salary- related payments associated with the payment of compensated <br />absences, for example, the employer's share of social security and medicare taxes. <br />This Statement is effective for financial statements for periods beginning after June 15, 1993. <br />GASB No. 17 Measurement Focus and Basis of Accounting - Governmental Fund <br />Operating Statements: Amendment of the Effective Dates of GASB No. 11 and Related <br />Statements. <br />This Statement was issued in June, 1993 and amends GASB Statements No. 10, Accounting and <br />Financial Reporting for Risk Financing and Related Insurance Issues, No. 11, Measurement <br />Focus and Basis of Accounting - Governmental Fund Operating Statements, and No. 13, <br />Accounting for Operating Leases with Scheduled Rent Increases. It defers the effective date of <br />Statement 11 to periods beginning approximately two years after an implementation standard is <br />issued and modifies the Statement 13 reference to Statement 11's effective date. It also <br />establishes an effective date for Statement 10, for entities other than pools, using the modified <br />accrual basis of accounting in governmental and similar trust funds, that is independent of the <br />effective date of Statement 11 and is effective for periods beginning after June 15, 1994. <br />PREPARED BY TAUTGES, REDPATH & CO., LTD. PAGE 1 OF 8 <br />