Management Report and Recommendations 12/31/1993

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ACCOUNTING STANDARDS UPDATE Appendix B Page 1 The Governmental Accounting Standards Board (GASB) issued eight statements of accounting standards during 1993. The following is a summary of those statements: GASB No. 16 Accounting For Compensated Absences This Statement was issued in November, 1992 and provides guidance for the measurement of accrued compensated absences liabilities by state and local governmental entities, regardless of the reporting model or fund type used to report the transactions. Compensated absences are absences for which employees will be paid, such as vacation, sick leave, and sabbatical leave. This Statement requires the compensated absences liability generally to be measured using the pay or salary rates in effect at the balance sheet date. It also requires additional amounts to be accrued for certain salary- related payments associated with the payment of compensated absences, for example, the employer's share of social security and medicare taxes. This Statement is effective for financial statements for periods beginning after June 15, 1993. GASB No. 17 Measurement Focus and Basis of Accounting - Governmental Fund Operating Statements: Amendment of the Effective Dates of GASB No. 11 and Related Statements. This Statement was issued in June, 1993 and amends GASB Statements No. 10, Accounting and Financial Reporting for Risk Financing and Related Insurance Issues, No. 11, Measurement Focus and Basis of Accounting - Governmental Fund Operating Statements, and No. 13, Accounting for Operating Leases with Scheduled Rent Increases. It defers the effective date of Statement 11 to periods beginning approximately two years after an implementation standard is issued and modifies the Statement 13 reference to Statement 1 l's effective date. It also establishes an effective date for Statement 10, for entities other than pools, using the modified accrual basis of accounting in governmental and similar trust funds, that is independent of the effective date of Statement 11 and is effective for periods beginning after June 15, 1994. GASB No. 18 Accounting for Municipal Solid Waste Landfill Closure and Postclosure Care Costs This Statement was issued in August, 1993 and establishes standards of accounting and financial reporting for Municipal Solid Waste Landfill (MSWLF) closure and postclosure care costs that are required to be incurred according to federal, state or local laws and regulations.