GASB Statement 54 – Fund Balance Reporting and Governmental Fund Type Definitions

Effective date:  For periods beginning after June 15, 2010

Scope – changes how fund balance is presented and clarifies use of governmental fund types.  New classifications – Nonspendable fund balance, restricted fund balance, committed fund balance, assigned fund balance and unassigned fund balance.

Special Revenue Funds

• Traditional definition – " … to account for the proceeds of specific revenue sources … that are legally restricted to expenditure for specified purposes."
• New definition – "Special revenue funds are used to account for and report the proceeds of specific revenue sources that are restricted or committed to expenditure for specified purposes other than debt service or capital projects."

Capital Project Funds

• Traditional definition – " … to account for financial resources to be used for the acquisition or construction of major capital facilities …"
• New definition - "Capital projects funds are used to account for and report financial resources that are restricted, committed, or assigned to expenditure for capital outlays including the acquisition or construction of capital facilities and other capital assets."

GASB Statement 55 – The Hierarchy of Generally Accepted Accounting Principles for State and Local Governments

Effective date:  Effective upon issuance

• SAS No. 69
  • Established GAAP hierarchy (1992)
  • Part of auditing standards
• Relocates as part of GASB standards
• Contents – essentially the same, specific reference to federal and international stands as other accounting literature.

GASB Statement 56 – Codification of Accounting and Financial Reporting Guidance Contained in the AICPA Statements on Auditing Standards

Effective date:  Effective upon issuance

• Accounting guidance included in authoritative auditing standards.
  • Related party transactions
  • Subsequent events
  • Going concern considerations
• Relocates as part of GASB standards

GASB Statement 57 – OPEB Measurements by Agent Employers and Agent Muliple-Employer Plans

Effective date: The provisions of Statement 57 related to the use and reporting of the alternative measurement method are effective immediately. The provisions related to the frequency and timing of measurements are effective for actuarial valuations first used to report funded status information in OPEB plan financial statements for periods beginning after June 15, 2011.

Alternative Method

• Optional use of alternative measurement method (simplified assumptions/no actuary), only if small (fewer than 100 members)
• Small employers in agent plans, only if overall plan is small, or no plan valuation (not GASB 34 compliant)

GASB Statement 58 – Accounting and Financial Reporting for Chapter 9 Bankruptcies

Effective date: For periods beginning after June 15, 2009. Retroactive application is required for all prior periods presented during which a government was in bankruptcy.

Scope – Chapter 9 bankruptcies only, not troubled debt restructuring

Timing – Disclosure at time of fling, recognition when Plan of Adjustment confirmed