Major Projects

Financial Reporting Model – The objective of this project is to make improvements to the financial reporting model, including Statement No. 34, Basic Financial Statements—and Management’s Discussion and Analysis—for State and Local Governments, and other reporting model-related pronouncements (Statements No. 35, Basic Financial Statements—and Management’s Discussion and Analysis—for Public Colleges and Universities, No. 37, Basic Financial Statements—and Management’s Discussion and Analysis—for State and Local Governments: Omnibus, No. 41, Budgetary Comparison Schedules—Perspective Differences, and No. 46, Net Assets Restricted by Enabling Legislation, and Interpretation No. 6, Recognition and Measurement of Certain Liabilities and Expenditures in Governmental Fund Financial Statements). The objective of these improvements would be to enhance the effectiveness of the model in providing information that is essential for decision-making and enhance the ability to assess a government’s accounting and address certain application issues, based upon the results of the pre-agenda research on the financial reporting model. The project has moved to the GASB Board for Invitation to Comment Redeliberations. Estimated Preliminary Views: Spring 2018.

Revenue and Expense Recognition– The objective of this project is to develop a comprehensive application model for the recognition of revenues and expenses that arise from nonexchange, exchange, and exchange-like transactions, including guidance for exchange transactions that have not been specifically addressed in the current literature. The purpose for developing a comprehensive model is (1) to improve the information regarding revenues and expenses that users receive to make decisions and assess accountability, (2) to provide guidance regarding exchange and exchange-like transactions that have not been specifically addressed, (3) to evaluate revenue and expense recognition in the context of the conceptual framework, and (4) to address application issues identified in practice, based upon the results of the pre-agenda research on revenue for exchange and exchange-like transactions. Status: INITIAL DELIBERATIONS.

Practice Issues

Capitalization of Interest Cost – The objective of this project is to reconsider the accounting and financial reporting standards for capitalization of interest cost, with the goal of enhancing the relevance of capital asset information and potentially simplifying financial reporting. In particular, the guidance will be reviewed in light of the definitions of financial statement elements now established in the GASB’s conceptual framework. An exposure draft is tentatively scheduled for the 4th Quarter 2017 or early 1st Quarter 2018.

Debt Disclosures, including Direct Borrowing – Reexamination of Statements 34, 38, and 62– The primary objective of this project is to define debt, including direct borrowing, to distinguish it from other long-term liabilities in applying disclosure requirements for notes to financial statements. The project also will evaluate whether (1) the disclosures in notes to financial statements related to long-term debt also should be required for short-term debt and (2) whether additional disclosures for direct borrowings are essential to a user’s understanding of the basic financial statements. An exposure draft is tentatively scheduled for the 3rd Quarter 2017.

Equity Interest Ownership Issues– This project will address certain issues related to the reporting of majority equity ownership in legally separate entities. The project will consider improvements to the existing guidance in Statement No. 14, The Financial Reporting Entity, on the presentation of ownership interest in a legally separate entity. The project also will consider improvements to the recognition and measurement guidance for wholly-owned legally separate entities that are presented as component units. An exposure draft is tentatively scheduled for the 1st Quarter 2018.

Implementation Guidance – Update – The objective of this project is to update implementation guidance for additional issues that come to the attention of the staff. In addition, this project will result in issuance of an annual update to the Comprehensive Implementation Guide. An exposure draft is tentatively scheduled for the 4th Quarter 2017.

Implementation Guide for Statement 75 on Other Postemployment Benefits – The objective of this project is to publish guidance to assist other postemployment benefit (OPEB) employers and governmental nonemployer contributing entities address implementation issues associated with Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions, as amended. This project will result in the issuance of an Implementation Guide focused on implementation issues related to employer-specific requirements. An exposure draft was issued June 28, 2017. Comments are due by September 25, 2015.

Pre-Agenda Research

Conduit Debt – Reexamination of Interpretation 2– The initial objectives of this pre-agenda research are (1) to evaluate the effectiveness of GASB Interpretation No. 2, Disclosure of Conduit Debt Obligations, and (2) to consider the need for revisions to existing standards. If additional guidance is determined to be needed, another objective will be to consider the development of revised accounting and financial reporting standards for conduit debt. Currently in the research and analysis phase with Board discussions scheduled for 3rd Quarter 2017.

Going Concern Disclosures – The objective of this research is to evaluate whether the existing GASB authoritative literature has provided preparers of financial statements for state and local governments sufficient guidance about management’s responsibilities for evaluating and disclosing uncertainties associated with severe financial stress (what is now referred to as “going concern” uncertainties). The research will provide the Board with the information it requires to consider the need for revisions to existing disclosure standards, which would be intended to reduce existing diversity in note disclosures and to more effectively meet financial statement user needs. Currently in the research and analysis phase with Board discussions scheduled for 4th Quarter 2017.

Information Technology Arrangements, including Cloud Computing – The initial objectives of this pre-agenda research are (1) to research current practices by governments with respect to reporting cloud computing contracts and similar arrangements and (2) to identify whether there is a need for specific guidance regarding the reporting of these arrangements. If additional guidance is determined to be needed, another objective would be to consider the development of accounting and financial reporting standards for cloud computing and similar arrangements. Currently in the review and analysis phase with Board discussions scheduled for 1st Quarter 2018.

Note Disclosures – The objective of this pre-agenda research is to evaluate whether currently required note disclosures are sufficiently meeting the information needs of the users of state and local government financial reports. The research will provide the Board with the information necessary to consider whether additional or revised guidance is needed and, if so, to support deliberations over specific note disclosure requirements. Currently in the research and analysis phase with Board discussions scheduled for 3rd Quarter 2018.

Public-Private Partnerships, including Reexamination of Statement 60 – The initial objectives of this pre-agenda research are (1) to identify public-private partnerships that may not be subject to Statement No. 60, Service Concession Arrangements, or the forthcoming Statement on leases, (2) to evaluate the effectiveness of Statement 60, and (3) to consider the need for revisions to existing standards. If additional guidance is determined to be needed, another objective would be to consider the development of accounting and financial reporting for public-private partnerships. Currently in the review and analysis phase with Board discussions scheduled for 1st Quarter 2018.

Social Impact Bonds – The initial objectives of this pre-agenda research will be to investigate what types of social impact bonds have been issued or are being considered for issuance, how governments are reporting social impact bonds, whether that reporting conforms with existing standards and concepts, and what information users need, if any, regarding these transactions. The research will collect the information necessary for the Board to determine whether specific guidance (for example, additional recognition guidance) is needed for social impact bonds and, if so, to establish standards. Currently in the review and analysis phase with Board discussions scheduled for 4th Quarter 2017.

GASB Statements

Pronouncements effective for fiscal years beginning after June 15, 2014. (2015 financial statements):

GASB Statement 68 – Accounting and Financial Reporting for Pensions—an amendment of GASB 27
Most of the changes from this statement will probably be administered by DRS and provided through the notes in the BARS manual.

GASB Statement 71 – Accounting and Financial Reporting for Pensions—an amendment of GASB 27
Most of the changes from this statement will probably be administered by DRS and provided through the notes in the BARS manual.

Pronouncements effective for fiscal years beginning after June 15, 2015. (2016 financial statements):

GASB Statement 72 – Fair Value Measurement and Application
Shouldn’t require most preparers to change any practices, but may require looking into how you are currently measuring fair value and will require more note disclosures. Mostly adds definitions to fair value measurements concepts that were not specifically defined before.

GASB Statement 76 – The Hierarchy of Generally Accepted Accounting Principles for State and Local Governments. This statement reduces the GAAP hierarchy to two categories of authoritative GAAP from the four categories under GASB Statement No. 55.

Pronouncements effective for fiscal years beginning after December 15, 2015. (2016 financial statements):

GASB Statement 77 – Tax Abatement Disclosures
Tax abatements occur when a government offers reduced taxes to a specific taxpayer for the purpose of spurring economic development. This statement requires disclosing information regarding tax abatement agreements such as, the purpose of the tax abatement program, the tax being abated, dollar amount of taxes abated, provisions for recapturing abated taxes, and the types of commitments made by the government and tax abatement recipients.

GASB Statement 78 – Pensions Provided through Certain Multiple-Employer Defined Benefit Pension Plans
Addresses pension plans that were not within the scope of Statement No. 68 and amends the scope and applicability of Statement No. 68.

GASB Statement 79 – Certain External Investment Pools and Pool Participants
This Statement addresses accounting and financial reporting for certain external investment pools and pool participants. Specifically, it establishes criteria for an external investment pool to qualify for making the election to measure all of its investments at amortized cost for financial reporting purposes.

Pronouncements effective for financial statements for periods beginning after June 15, 2016.  (2017 financial statements):

GASB Implementation Guide No. 2016-1 – Implementation Guidance Update – 2016
The objective of this Implementation Guide is to provide guidance that clarifies, explains, or elaborates on GASB Statements.

Pronouncements effective for financial statements for periods beginning after December 15, 2016.  (2017 financial statements):

GASB Statement 73 – Accounting and Financial Reporting for Pensions and Related Assets That Are Not within the Scope of GASB Statement 68, and Amendments to Certain Provisions of GASB Statements 67 and 68. Requires pensions that are not covered under GASB 68 to follow the same requirements.

GASB Statement 74 – Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans
Aligns OPEB plans with existing pension plan standards. Will require changes to actuarial methodology, new note disclosures and new RSI schedule.

GASB Statement 80 – Blending Requirements for Certain Component Units
This Statement amends the blending requirements for the financial statement presentation of component units of all state and local governments. The additional criterion requires blending of a component unit incorporated as a not-for-profit corporation in which the primary government is the sole corporate member.

GASB Statement 81 – Irrevocable Split-Interest Agreements
This Statement addresses accounting and financial reporting for irrevocable split-interest agreements.

GASB Statement 82 – GASB Statement No. 82, Pension Issues—an amendment of GASB Statements No. 67, No. 68, and No. 73
This Statement addresses an employer’s pension liability that is measured as of a date other then the employer’s most recent fiscal year-end, among other pension issues.

GASB Implementation Guide No. 2017-2 – Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans
The objective of this Implementation Guide is to provide guidance that clarifies, explains, or elaborates on GASB Statements. Effective Date: Except for the requirements in Questions 4.80, 4.144, and 4.151, the requirements of this Implementation Guide are effective for reporting periods beginning after December 15, 2016. Earlier application is encouraged if Statement 74 has been implemented.

Pronouncements effective for fiscal years beginning after June 15, 2017. (2018 financial statements):

GASB Statement 75 – Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions
Aligns OPEB with existing pension standards. Will require changes to actuarial methodology, new note disclosures and new RSI schedule.

GASB Statement 85 – Omnibus 2017
This Statement addresses practice issues identified during the implementation and application of certain GASB Statements and covers a variety of topics related to blending component units, goodwill, fair value measurement and application, and postemployment benefits (pensions and other postemployment benefits [OPEB]).

GASB Statement 86 – Certain Debt Extinguishment Issues
This Statement addresses accounting and financial reporting for in-substance defeasance of debt and improves accounting and financial reporting for prepaid insurance on debt that is extinguished and notes to financial statements for debt that is defeased in substance.

GASB Implementation Guide No. 2017-1 – Implementation Guidance Update – 2017
The objective of this Implementation Guide is to provide guidance that clarifies, explains, or elaborates on GASB Statements.

GASB Implementation Guide No. 2017-2 – Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans
The objective of this Implementation Guide is to provide guidance that clarifies, explains, or elaborates on GASB Statements. The requirements in Questions 4.80, 4.144, and 4.151 are effective for reporting periods beginning after June 15, 2017. Earlier application is encouraged if the related OPEB plan provision of Statement No. 85, Omnibus 2017, has been implemented.

Pronouncements effective for fiscal years beginning after June 15, 2018. (2019 financial statements):

GASB Statement 83 – Certain Asset Retirement Obligations
This Statement addresses accounting and financial reporting for certain asset retirement obligations.

Pronouncements effective for fiscal years beginning after December 15, 2018. (2019 financial statements):

GASB Statement 84 – Fiduciary Activities
This Statement improves guidance regarding the identification of fiduciary activities for accounting and financial reporting.

Pronouncements effective for fiscal years beginning after December 15, 2019. (2020 financial statements):

GASB Statement 87 – Leases
The objective of this Statement is to better meet the information needs of financial statement users by improving accounting and financial reporting for leases by governments.