March 21, 2006 CCP - Laserfiche WebLink

Home Browse Search

City of Lake Elmo February 17,2006 Page Seventeen Other Items Future Accounting Standard Changes The following Governmental Accounting Standards Board (GASB) Statements have been issued and may have an impact on future City financial statements: GASB Statement No. 42 -Accounting and Financial Reporting for Impairment of Capital Assets and for Insurance Recoveries This statement is effective for periods beginning after December 15, 2004 and deals with the accounting and financial reporting for impairment of capital assets. According to the GASB, "Ibis Statement improves financial reporting because it requires governments to report the effects of capital asset impairments in their financial statements when they occur rather than as a part of the ongoing depreciation expense for the capital asset or upon disposal of the capital asset. Users of financial statements will better understand when impairments have occurred and what their financial impact is on the government. This statement also enhances comparability of financial statements between governments by requiring all governments to account for insurance recoveries in the same manner." GASB Statement No. 43 - Financial Reportingfor Post employment Benefit Plans Other than Pension Plans This statement is effective one year prior to the effective date of Statement No. 45 for the employer or largest participating employer in the benefit plan for multiple -employer plans. According to Statement No. 43, "The objective of this statement is to establish uniform standards of financial reporting by State and local governmental entities for other post employment benefit plans (OPEB plans). The term other post employment benefits (OPEB) refers to post employment benefits other than pension benefits and includes (a) post employment healthcare benefits and (b) other types of post employment benefits (for example, life insurance) if provided separately from a pension plan. The term plans, in this context, refers to trust or other funds through which assets are accumulated to finance OPEB, and benefits are paid as they come due. This statement provides standards for measurement, recognition, and display of the assets, liabilities, and, where applicable, net assets and changes in net assets of such funds and for related disclosures. The requirements of this statement apply whether an OPEB plan is reported as a trust or agency fund or a fiduciary component unit of a participating employer or plan sponsor, or the plan is separately reported by a public employee retirement system (PERS) or other entity that administers the plan." GASB Statement No. 44 - Economic Condition Reporting: The Statistical Section an amendment ofNCGA Statement 1 This statement only applies to statistical sections of financial statements. It is effective for periods beginning after June 15, 2005. The City currently does not prepare a statistical section. GASB Statement No. 45 -Accounting and Financial Reporting by Employers for Post employment Benefits Other Than Pensions This statement is effective in three phases based on a government's total annual revenues in the first fiscal year ending after June 15, 1999: • Governments that were phase 1 governments for the purpose of implementation of Statement No. 34 - those with annual revenues of $100 million or more - are required to implement this Statement in financial statements for periods beginning after December 15, 2006. 952,835.9090 • Fax 952.835.3261 w .aemepas.com