GASB Update Florida School Finance Officers Association June 12, 2018

Transcription

1 GASB Update Florida School Finance Officers Association June 12, Becker Professional Education Corporation. All rights reserved. The copyright in this material is owned by Becker Professional Education Corporation, or where specifically indicated, by the original creator of the material. None of this material may be copied, reproduced, republished, or displayed in any form or by any means, including, but not limited to, electronic, mechanical, photocopying, or otherwise, without the prior written permission of Becker Professional Education Corporation or the copyright owner.

2 Learning Objectives Program Level: Basic After completing this course, the learner should be able to: Identify recently issued or implemented GASB s Describe the impact of recently issued GASB Statements Describe the availability of recently issued Implementation Guides Identify the status of various GASB Proejcts Field of Study: Enter text here Program Prerequisite: Enter text here Advance Preparation: Enter text here

3 Program Content This course will be an overview of: Overview of GASB Publications Overview recent GASB s set for implementation in the current year. Overview recent GASB s set for implementation in subsequent periods. Overview of recently available Implementation Guides Status of Major GASB Project Documents

4 Major Topic / Concept Index Review of GASB Publications Statements Implementation Guidance GASB Projects and Other Slide title name Slide title name Current Year Implementation, Issued prior to 2017 GASB 75 GASB 81 GASB 82 Current Year Implementation, Issued After 2017 GASB 85 GASB 86 Slides 6-10 Slides Slides

5 Major Topic / Concept Index Future Implementation Implementation Guides Other GASB 83 GASB 84 GASB 87 GASB Conceptual Framework Financial Reporting Model Public-Private Partnerships Revenue and Expense Recognition Slides Slides Slides

6 1 Review of GASB Publications

7 Review of GASB Statements GASB Statements Issue Date Effective Date Statement 75, Accounting and Financial Reporting for 06/15 06/15/17 Postemployment Benefit Plans Other Than Pension Plans YE 6/30/18 Statement 81, Irrevocable Split-Interest Agreements 03/16 06/15/17 YE 6/30/18 Statement 82, Pension Issues - an amendment of GASB Statements 67, 68, and 73 03/16 06/15/17 YE 6/30/18 Statement 85, Omnibus /17 06/15/17 YE 6/30/18 Statement 86, Certain Debt Extinguishment Issues 05/17 06/15/17 YE 6/30/18

8 Review of GASB Statements GASB Statements Issue Date Effective Date Statement 83, Certain Asset Retirement Obligations 11/16 06/15/18 YE 6/30/19 Statement 84, Fiduciary Activities 01/17 12/15/18 YE 6/30/20 Statement 87, Leases 06/17 12/15/19 YE 6/30/21 Statement 88, Certain Disclosures Related to Debt, including Direct Borrowings and Direct Placements 04/18 06/15/18 YE 6/30/19

9 Review of GASB Implementation Guidance GASB Implementation Guidance Issue Date Effective Date Implementation Guide No , Implementation Guidance 04/17 06/15/17 Update 2017 YE 6/30/18 Implementation Guide No , Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans Implementation Guide No , Accounting and Financial Reporting for Postemployment Benefits other than Pensions (and certain issues Related to OPEB Plan Reporting) Implementation Guide No , Implementation Guidance Update /17 06/15/17 YE 6/30/18 11/17 12/15/17 YE 6/30/19 04/18 06/15/18 YE 6/30/19

10 Other GASB Projects and Issues GASB Projects and Issues Recent Status Update Conceptual Framework: Recognition 05/18 Preliminary View, Redeliberations Financial Reporting Model 05/18 Invitation to Comment Redeliberations Public-Private Partnerships, Including Reexamination of Statement 60 04/18 Added to Agenda Revenue and Expense Recognition 02/18 Invitation to Comment

11 2 Current Year Implementation, Issued prior to 2017

12 Current Year Implementation, Issued Prior to 2017 Statement No. 75 Accounting and Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans Issued June 2015 Effective for reporting periods beginning after June 15, 2017 Statement addresses accounting and financial reporting or other postemployment benefits (OPEB) provided to employees of state and local governmental employers. Standards established by the statement cover: Recognition and measurement of liabilities, deferred inflows and outflows of resources, and expenses and expenditures. Methods and assumptions used to project benefits, discount benefits and attribute them to periods of employee service Note disclosures and Required Supplementary Information regarding OPEB

13 Current Year Implementation, Issued Prior to 2017 Defined Benefit OPEB Single employer OPEB OPEB plans in which OPEB is provided to the employees of only one employer Agent employers Agent multiple employer OBEB plan assets are pooled for investment purposes but separate accounts are maintained. Cost sharing employers OPEB plans in which the OPEB obligation to the employees of more that one employer are pooled and plan assets can be used to pay the benefits of employees of any employer that provide OPEB through the plan Key Point Standards for OPEB accounting and reporting are consistent but adapted to unique organizational set up.

14 Current Year Implementation, Issued Prior to 2017 Measurement of OPEB Liability to Employees for Benefits Total OPEB Liability Less : OPEB Fiduciary Net Position Net OPEB Liability Total OPEB liability is generally required to be determined through an actuarial valuation Valuation is required to be performed at least every two years Valuation must be made in accordance with Actuarial Standards of Practice issued by the Actuarial Standards Board. Projected benefits are discounted Using a long term expected rate of return if net position is sufficient Using the tax exempt rate if conditions for use of long term expected rate are not met

15 Current Year Implementation, Issued Prior to Key Point Alternatives to measurement and other standards are available to employers providing OPEB coverage to fewer that 100 employees

16 Current Year Implementation, Issued Prior to 2017 Single and Agent Employers Assuming use of the economic resources measurement focus and accrual basis of accounting must recognize a liability equal to the net OPEB liability OPEB expenses and deferred outflows or inflows of resources related to the OPEB relate to changes in the net OPEB liability Key Point In governmental fund financial statements, a net OPEB liability is required to be recognized to the extent the liability is normally expected to be liquidated with expendable available financial resources.

17 Current Year Implementation, Issued Prior to 2017 Single and Agent Employers (continued) Most changes in the OPEB liability are included in OPEB in the period of the change Services costs Interest costs Changes in plan benefits Expected earnings on plan assets Some changes are deferred and recognized in a systematic and rational manner Changes in the economic and demographic assumptions Differences between expected and actual experience (e.g. investment earnings)

18 Current Year Implementation, Issued Prior to 2017 Assets Expenses Actuarial Adjustments: Changes in Economic or Demographic Assumptions Actuarial Adjustments: Differences between actual and projected investment returns Deferred Outflows Liabilities Deferred Inflows Systematically allocated expense Service Costs Interest Costs (Return on Plan Assets) Net Position Prior service costs Total OPEB Expense

19 Current Year Implementation, Issued Prior to 2017 Notes to the financial statements Current year sources of changes in the net OPEB liability Significant assumptions and other inputs used to calculate the total OPEB liability Date of the actuarial valuation or calculation Required supplementary information. Sources of changes in the net OPEB liability Components of the net OPEB liability and related ratios, including the OPEB plan s fiduciary net position as a percent of the total OPEB liability The net OPEB liability as a percentage of covered employee payroll

20 Current Year Implementation, Issued Prior to 2017 Cost-Sharing Employers Liability variables are similar if not identical to single employer and agent OPEB plans Cost sharing employers must also consider the changing proportion of the net OPEB liability attributable to the employer. Cost sharing employers must consider the impact of different measurement dates.

21 Current Year Implementation, Issued Prior to 2017 OPEB provided through premiums paid to an insurance company OPEB expense/ expenditures equal to the amount of premiums or other payments required in accordance with their agreement with the insurance company Character of OPEB benefits must be disclosed. Defined Contribution OPEB. OPEB expense is equal to the amount of employer contributions, net of forfeited benefits. OPEB expenditures are equal to the amounts paid and the change between the beginning and ending balance of amount due.

22 Current Year Implementation, Issued Prior to 2017 Statement No. 81 Irrevocable Split-Interest Agreements Issued March 2016 Effective for reporting periods beginning after June 15, 2017 Provides recognition and measurement guidance for situations in which a government is a beneficiary of an agreement along with at least one other beneficiary.

23 Current Year Implementation, Issued Prior to 2017 Split interest agreements General Definition Giving agreements used by donors to provide resources to two or more, beneficiaries including governments. Creation Split interest agreements may be created through trust or other legally enforceable agreements in which a donor transfers resources to an intermediary to hold and manage for the benefit for the government and at least one other beneficiary Examples Charitable lead trusts Charitable remainder trusts.

24 Current Year Implementation, Issued Prior to 2017 Split interest agreements Lead Interest A type of beneficial interest that confers the right to receive all or a portion of the benefits of resources during the term of a spilt-interest agreement. Remainder Interest A type of beneficial interest that confers the right to receive all or a portion of the resources remaining at the end of a split-interest agreement s term.

25 Current Year Implementation, Issued Prior to 2017 Recipient of resources pursuant to an irrevocable split interest agreement Assets Liability Deferred inflow Resources Received Assigned to other beneficiaries Unconditional Remainder or Lead Interest

26 Current Year Implementation, Issued Prior to 2017 Accounting and Reporting Reporting A government that receives resources pursuant to an irrevocable split interest agreement must recognize assets, liabilities and deferred inflows of resources at the inception of the agreement Accounting Governments must recognize assets representing its beneficial interest in irrevocable split-interest agreements that are administered by a third party, if the government controls the present service capacity of the beneficial interest The government must recognize revenue when the resources become applicable to reporting periods. Assets and deferred inflows of resources are recognized when the government becomes aware of the agreement and has sufficient information to measure the beneficial interest.

27 Current Year Implementation, Issued Prior to 2017 Accounting and Reporting Government has remainder interest Assets recognized for resources received or receivable Liability recognized for the lead interest that is assigned to other beneficiaries Deferred inflows recognized for the unconditional remainder interest Government has a lead interest Assets recognized for resources received or receivable Liability recognized for the remainder interest that is assigned to other beneficiaries Deferred inflows recognized for the unconditional lead interest

28 Current Year Implementation, Issued Prior to 2017 Statement No. 82 Pension Issues - an amendment of GASB Statements 67, 68, and 73 Issued March 2016 Effective for reporting periods beginning after June 15, 2016, except for the section on actuarial assumptions (Effective in the first reporting period in which the measurement date of the pension liability is on or after June 15, 2017) Standard address practice issues associated with Covered Payroll Required Supplementary Information Actuarial Assumptions Classification of Employer-Paid Member Contributions.

29 Current Year Implementation, Issued Prior to 2017 Covered Payroll Required Supplementary Information Changes the bases on which RSI computations are provided to the payroll on which contributions to a pension plan are based. Actuarial Assumptions Deviations from guidance in the Actuarial Standards of Practice is not considered to be in conformity with GASB Statements Classification of Employer Paid Member Contributions Payments made by an employer to satisfy contribution requirements should be classified as plan member contributions Employer expenses and expenditures for those amounts should be recognized in the period for which the contribution is assessed and classified in a manner consistent with similar compensation other than pensions

30 3 Current Year Implementation, Issued After 2017

31 Current Year Implementation, Issued After 2017 Statement No. 85 Omnibus 2017 Issued March 2017 Effective for reporting periods beginning after June 15, 2017 Numerous issues addressed by the GASB to clarify application of a diverse set of standards including Blending criteria for governments that report a single column for business type activities Reporting amounts previously reported as goodwill Classifying real estate held by insurance entities Measuring certain investments Various OPEB issues.

32 Current Year Implementation, Issued After 2017 Statement No. 86 Certain Debt Extinguishment Issues Issued May 2017 Effective for reporting periods beginning after June 15, 2017 Statement issued to improve consistency in accounting and financial reporting for in substance defeasance of debt when resources other than refunding proceeds are used to extinguish debt.

33 Current Year Implementation, Issued After 2017 Definition of Defeased Debt Debt be considered defeased when cash or other monetary assets acquired with refunding debt proceeds are placed in an irrevocable trust to be used solely for the payment of principal and interest. Requirements Prepaid insurance existing for the extinguishment of debt must be included in gain or loss in the period of defeasance Additional disclosures must me made if the trust is permitted to replace essentially risk free assets with assets not essentially risk free..

34 4 Future Implementation

35 Future Implementation Statement No. 83 Certain Asset Retirement Obligations Issued November 2016 Effective for reporting periods beginning after June 15, 2018 GASB Statement 83 addresses accounting for obligations to retire certain tangible capital assets arising from contracts or court judgments. New statement does not supersede standards associated with accounting for municipal land fills.

36 Future Implementation Definition Asset Retirement Obligations result from the normal operations of tangible capital assets whether acquired or constructed and include legally enforceable liabilities associated with all of the following activities: Retirement of a tangible capital asset Disposal of a replaced part that is a component of a tangible capital asset Environmental remediation associated with the retirement of a tangible capital asset that results from the normal operation of that capital asset.

37 Future Implementation A government should recognize an Asset Recovery Obligation (ARO) when the liability is incurred and reasonably estimable. Evidence of the incurred liability stems from external obligating events and internal obligating events External Approval of federal, state or local laws or regulations Creation of a legally binding contract Issuance of a court judgment Internal Contamination related (occurrence of contamination) Non Contamination related (consumption of usable capacity) Key Point When an ARO is recognized, a government also should recognize a corresponding deferred outflow of resources.

38 Future Implementation Initial Measurement The measurement of an ARO should be based on the best estimate of current value of outlays expected to be incurred. Current value is the amount that would be paid if all equipment, faculties and services included in the estimate were acquired at the end of the current reporting period. Deferred outflow of resources should be equal to the ARO. Deferred Outflow of Resources Asset Recovery Obligation

39 Future Implementation Subsequent Measurement - ARO A government should adjust the current value if its ARO for the effects of general inflation or deflation as least annually. Additional factors include changes in government regulations, technology, etc. Changes in the estimated ARO should be recognized as a corresponding change to deferred outflows. Subsequent Measurement Deferred Outflow A government should recognize a reduction of the deferred outflow of resources in a systematic and rational manner Over the entire life of an asset placed in service Over the remaining life of an asset already placed in service.

40 Future Implementation Recognition and Measurement in Financial Statements Prepared Using the Current Financial Resources Measurement Focus. Liabilities and expenditures should be recognized for goods and services used for asset retirement activities upon receipt of those goods and services to the extent that the amounts are normally expected to be liquidated with expendable available financial resources.

41 Future Implementation Note Disclosures Notes to the financial statements should include the following information regarding an entity s ARO s A general description of the ARO and associated tangible assets Source of the obligation Estimated remaining useful life of the capital asset How legally mandated funding requirements are being met Reasons for any unrecorded ARO associated with obligations not reasonably estimable.

42 Future Implementation Statement No. 84 Fiduciary Activities Issued January 2017 Effective for reporting periods beginning after December 15, 2018 The statement establishes criteria for identifying fiduciary activities of state and local governments with specific attention to : whether the government is controlling the assets of the fiduciary activity and the beneficiaries with whom a fiduciary activity exists. Activity meeting the criteria should be reported in a fiduciary fund.

43 Future Implementation Component unit and other fiduciary activities are titled as follows: Fiduciary Component Units Pension and OPEB Fiduciary Component Units Non Pension and OPEB Other Fiduciary Activities

44 Future Implementation Fiduciary Component Units Pension and OPEB Pension plans administered through a trust that meets GASB 67 criteria OPEB plans that meet GASB 74 criteria Resources accumulated for pensions as described in GASB 73 Resources accumulated for an OPEB as described in GASB 74 The legal obligation of the government to make contributions to the plan generally creates the component unit relationship.

45 Future Implementation Fiduciary Component Units Non Pension and OPEB Assets are administered through a trust agreement or equivalent arrangement in which the government itself is not a beneficiary. Assets are dedicated to providing benefits to recipients in accordance with benefit terms Assets are legally protected from the creditors of the government.

46 Future Implementation Other Fiduciary Activities An activity must meet all of the following criteria to be considered and other fiduciary activity The assets associated with the activity are controlled by the government The assets associated with the activity Are not derived solely from the governments own-source revenues Are not derived from government-mandated nonexchange or voluntary nonexchange transactions (that would not qualify for fiduciary treatment resulting from the absence of the government s administrative or financial involvement. The assets associated with he activity have one or more of the following characteristics administered through a trust in which the government itself is not a beneficiary dedicated to providing benefits to recipients in accordance with the benefit terms and legally protected form the creditors of the government

47 Future Implementation Key Point School Districts may find that some activities, such as student activity funds, may no longer qualify for treatment as a fiduciary activity. Reclassification to governmental or business type activities will increase volume in government-wide presentations.

48 Future Implementation Control of Assets A government controls the assets of an activity if the government Holds the assets or Has the ability to direct the uses, exchange or employment of the assets in a manner that provides benefits to the specified or intended recipients. Restrictions from legal or other external restraints that stipulate the assets can be used only fox specific purpose do not negate a governments control of the assets.

49 Future Implementation Reporting Fiduciary Activities Fiduciary activities should be presented in one of the following funds Pension (and other employee benefit) trust funds Investment trust funds Private purpose trust funds Custodial funds (accounting for activities not meeting the definition of other fiduciary funds) Key Point Introduction of the custodial fund does away with the term agency fund upon implementation of this Statement.

50 Future Implementation Pension (and other employee benefit) trust funds Pension plans and OPEB plans that are administered through trusts that meet the criteria of GASB 67 and 74 Other employee benefit plans for which (1) resources are held in trust and (2) contributions to the trust and earnings are irrevocable. Investment Trust Funds Report fiduciary activities from external portion of investment pools and individual investment accounts that are held In a trust Private purpose trust funds Report fiduciary activities that are not required to be reported in pension funds and are held in trust

51 Future Implementation Custodial funds Report fiduciary activities that are not required to be reported in pension, investment trust or privatepurpose trust funds. Key Point Held in Trust must meet the specific criteria described earlier The assets associated with he activity have one or more of the following characteristics administered through a trust in which the government itself is not a beneficiary dedicated to providing benefits to recipients in accordance with the benefit terms and legally protected form the creditors of the government

52 Future Implementation Financial Statements Financial statement requirements remain largely consistent with previous standards. Fiduciary funds must report Statement of Fiduciary Net Position Statement of Change in Fiduciary Net Position. Key Point Custodial funds will report transactions formerly presented in agency funds. Custodial funds will require a Statement of Change in Fiduciary Net Position, a presentation formerly not used by agency funds. Single aggregated amounts for additions and deductions may be presented. An example of a custodial fund addition description is property taxes collected for other governments. An example of a custodial fund deduction description is property taxes distributed to other governments..

53 Future Implementation Statement No. 87 Leases Issued June 2017 Effective for reporting periods beginning after December 15, 2019 The Leases standard seeks to better meet the information needs of financial statement users by improving accounting and financial reporting for leases by governments. Key Point Underlying concept: Leases represent the financing of the right to use an underlying asset. Operating leases are largely no longer used; lease arrangements are financing leases, similar to the capital lease classification used under previous standards

54 Future Implementation Definition of a Lease As lease is defined as: a contract that conveys control of the right to use another entity's nonfinancial asset as specified in the contract for a period of time in exchange or exchange-like transactions. Examples of non financial asses include Buildings, land, vehicles and equipment Key Point Contracts meeting this definition should be accounted for as a lease.

55 Future Implementation Determination of whether a contract conveys control The government should assess whether it has both of the following The right to obtain the present services capacity from the use of the underlying asset as specified in the contract The right to determine the nature and manner of use of the underlying asset as specified in the contract. Key Point Lessee s ability to use the asset to its full capability at the lessee s discretion represents control

56 Future Implementation Common exceptions from the lease standard include Leases of intangibles (oil exploration, patents, copyrights, etc.) Leases of biological assets (timber, livestock) Leases of inventory Concession arrangements Supply contracts

57 Future Implementation Lease Term The lease term is the period during which a lease has a no cancelable right to use an underlying asset plus the following periods: Lessee Lessor Option to Extend Reasonably certain Lessee will exercise option Reasonably certain Lessor will exercise option Option to Terminate Reasonably certain Lessee will not exercise option Reasonably certain Lessor will not exercise option

58 Future Implementation Factors to consider in lease term History of Exercising Options Essential Qualities of Asset

59 Future Implementation Short Term Leases Leases whose terms are 12 months or less at the commencement of the lease term are considered short term leases. Short tem leases are treated as an expense by the lessee Short term leases are treated a revenue by the lessor No required disclosure

60 Future Implementation Lessee Accounting Recognition at lease commencement Intangible right-to-use lease asset (initial measurement of the lease liability) Lease liability (PV of future lease payments) Intangible right-to-use Asset Liability Value of Liability PV of future lease payments Amortize over lesser of asset life or lease term Effective interest method

61 Future Implementation Discount Rates Future lease payments should be discounted using the interest rate the lessor charges the lessee If unavailable, the lessee should select either: Interest rate implicit in the lease (if the interest rate cannot be readily determined by the lessee The lessee s estimated incremental borrowing rate

62 Future Implementation Re measurement of the liability may be appropriate if significant changes occur. Change in the lease term Changes in the residual value Changes in the likelihood of exercise of the purchase option Other Key Point Discount rates should be updated as part of the remeasurement that comes in response to a change in the lease term or change in the assessed likelihood of the purchase option.

63 Future Implementation Notes to financial statements Lessees Note disclosures should include the following regarding lease activities A general description of its leasing arrangements The total amount of leased assets and related accumulated amortization disclosed separately from other capital assets The amount of leased assets by major classes of underlying assets, disclosed separately from other capital assets The amount of outflows of resources recognized in the reporting period for other payments. Principal and interest requirements for each of the next five years and remaining five year increments. Commitments Components of impairments

64 Future Implementation Lessor Accounting Recognition at lease commencement Lease Receivable Deferred Inflow of Resources Underlying asset remains on the books Initial direct costs are expensed Underlying Asset Historical Cost Depreciated Lease Receivable Equal to Lessee Liability Reduce by Payments Deferred Inflow Rational Systematic Revenue Recognition

65 Future Implementation Lease Receivable The lease receivable is measured at the present value of lease payments expected to be received during the lease term (reduced by any provision for estimated uncollectible amounts). Components of valuation include Fixed payments Variable payments Residual value guaranteed payments Lease incentives

66 Future Implementation Lease receivable re measurement Subsequent re measurement of a receivable by a lessor will occur if There is a change in the lease term Three is a change in the interest rate the lessor charges the lessee Resolution of contingencies that create fixed payments Key Point The lessor should update the discount rate as part of re measurement if there is change in the lease term or a change in the interest rate the lsessor charges the lessee

67 Future Implementation Deferred Inflow of Resources A lessor should measure the deferred inflow of resources as The amount of the initial measurement of the lease receivable Lease payments received from the lessee at or before the commencement of the lease term that relate to future periods. Underlying Asset The lessor keeps the underlying asset on the books Generally assets are depreciated If the lease contract requires the lessee to return the asset in the original or enhanced condition, a lessor should not depreciate the asset during the lease term

68 Future Implementation Notes to the financial statements A lessor should provide a variety of disclosures including the following about its lease activities A general description of its leasing arrangements including the basis terms and conditions on which any variable payments not included in the measurement of the leases receivable are determined. The total amount of inflow of resources (e.g. revenue) Expected receipts for each of the next five years and in five year increments until maturity The amount of inflows recognized in the reporting period. Specific disclosures regarding leases of investment assets Specific disclosures regarding leases associated with entities whose primary purpose is leasing assets.

69 Future Implementation Lease Contracts with Multiple Components Generally leases with multiple components (e.g. an asset and maintenance services) or multiple assets with different lease terms are accounted for separately. Allocation is based on pricing or, in the absence of pricing, professional judgment.

70 Future Implementation Sublease Subleases embrace a number of different business arrangements Three parties to a sublease include the original lessor and lessee. The original lessee becomes a lessor in the sublease. The original and sublease contracts are treated as separate transactions. Sale and leaseback could be a sale or could be borrowing activity Sublease Separate from original lease Original and sub lease stand alone Sale-leaseback Separate transactions Disclose terms and conditons Lease-leaseback Reported as net transaction, disclosed separately

71 Future Implementation Summary of Accounting and Reporting Requirements Initial Recognition Asset Liability Deferred Inflow Lessee Intangible PV lease payments, Prepaids and Initial Costs PV of future lease payments Lessor Lease receivable Lease Receivable, Up front payments

72 Future Implementation Summary of Accounting and Reporting Requirements Subsequent Periods Asset Liability Lessee Amortize Reduce by applied principal Lessor Reduced by receipts Deferred Inflow Amortized (rational)

73 Future Implementation Statement No. 88 Certain Disclosures Related to Debt, including Direct Borrowings and Direct Placements Issued April 2018 Effective for reporting periods beginning after June 15, 2018 Standard issued to improve consistency in the information disclosed in the financial statements issued by governments rated to debt to provide financial statement users with additional essential information about debt. Scope includes direct borrowings and direct placements.

74 Current Year Implementation, Issued Prior to 2017 Notes to Financial Statements Additional disclosures Amount of unused lines of credit Assets pledged as collateral for debt Terms in debt agreements related to Events of default Termination events with finance-related consequences Subjective acceleration clauses

75 Current Year Implementation, Issued Prior to 2017 Notes to Financial Statements Disclosures should separate Direct borrowings and direct placements Other

76 5 Implementation Guides

77 Implementation Guides Implementation Guide No Implementation Guidance Update Issued April 2017 Effective for reporting periods beginning after June 15, 2017 Clarification guidance is provided to various GASB statements in a question and answer format.

78 Implementation Guide New Questions and Answers Cash Flows Reporting Financial Reporting Entity Pensions Plan and Employer Accounting and Reporting Accounting and Financial Reporting for Certain Investments and for External Investment Pools Other Implementation Guidance Fund Balance Reporting and Governmental Fund Type Definitions Tax Abatement Disclosures

79 Implementation Guide Amendments to Previously Issued Questions and Answers Disclosures Related to Deposits with Financial Institutions, Investments and Reverse Repurchase Agreements Risk Financing and Related Insurance Issues Financial Reporting Entity Pensions- Plan and Employer Accounting and Reporting Basic Financial Statements and Management s Discussion and Analysis Other

80 Implementation Guides Implementation Guide No Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans Issued April 2017 Effective for reporting periods beginning after June 15, 2017 Clarification guidance is provided for standards associated with Financial Reporting for Postemployment Benefit Plans Other Than Pension Plan in a question and answer format.

81 Implementation Guide Implementation Guidance Scope and Applicability of Statement 74 Types of OPEB and OPEB Plans Defined Benefit OPEB Plans That Are Administered through Trusts Number of OPEB Plans Financial Statements Required Supplementary Information Measurement of the OPEB Liability Statistical Section Assets Accumulated for Purposes of Providing OPEB through Defnied Benefit OPEB plans That Are Not Administered through Trusts Defined Contribution OPEB Plans That are Administered through Trusts

82 Implementation Guides Implementation Guide No Accounting and Financial Reporting for Postemployment Benefits other than Pensions (and certain issues related to OPEB Plan Reporting) Issued November 2017 Effective for reporting periods beginning after December 15, 2017 Clarification guidance is provided for standards associated with Financial Reporting for Postemployment Benefit Plans Other Than Pensions (and certain issues related to OPEB Plan Reporting) in a question and answer format.

83 Implementation Guide Implementation Guidance Types of OPEB Types of Defined Benefit OPEB Plans and Employers Special Funding Situation Defined Benefit OPEB Other Than Insured Benefits OPEB Proved through OPEB Plans that are not Administered through Trusts Insured Benefits Defined Contribution OPEB

84 Implementation Guides Implementation Guide No Implementation Guidance Update Issued April 2018 Effective for reporting periods beginning after June 15, 2018 The AICPA defines applicable financial reporting framework within various professional standards as the financial reporting framework adopted by management and, when appropriate, those.

85 Implementation Guide New Questions and Answers Pensions Employer Accounting and Reporting Postemployment Benefits Other Than Pensions Plan Reporting The Statistical Section Other Implementation Guidance Statement No. 62, Codification of Accounting and Financial Reporting Guidance Contained in Pre- November 30, 1989 FASB and AICPA Pronouncements Tax Abatement Disclosures

86 Implementation Guide Amendments to Previously Issued Questions and Answers Disclosures Related to Deposits with Financial Institutions, Investments and Reverse Repurchase Agreements Cash Flows Reporting Pensions- Plan and Employer Accounting and Reporting Basic Financial Statements and Management s Discussion and Analysis The Statistical Section Other

87 6 Other

88 Other Conceptual Framework: Recognition Preliminary Views Issued: June 2011 Status: Preliminary view, Redeliberations The objective of this project it to develop recognition criteria for whether information should be reposted in state and local government financial statements and when that information should be reported. The project is anticipated to produce a Concept Statement after 2022

89 Other Conceptual Framework Conceptual Framework Pre Agenda Research Added to Agenda Initial Deliberations Preliminary views Preliminary views and comment Preliminary views/ re deliberation s Exposure Draft 89

90 Other Financial Reporting Model Invitation to comment redelberatons: June 2017 Status: Invitation to Comment, Redeliberations The Financial Reporting Model project is designed to re examine standards associated with financial reporting and the financial reporting model. 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 accounting and application issues. The project is anticipated to produce a Statement during 2022

91 Other Financial Reporting Model Financial Reporting Model Pre Agenda Research Added to Agenda Initial Deliberations Preliminary views Preliminary views and comment Preliminary views/ re deliberation s Exposure Draft 91

92 Other Public-Private Partnerships, Including Reexamination of Statement 60 Issued: April 2018 Status: Added to Agenda The objective of the statement is address accounting and reporting for public-private partnerships. The project is anticipated to produce a Statement during 2020

93 Other Public Private Partnerships Public Private Partnerships Pre Agenda Research Added to Agenda Initial Deliberations Preliminary views Preliminary views and comment Preliminary views/ re deliberation s Exposure Draft 93

94 Other Revenue and Expense Recognition Invitation to comment Issued: February 2018 Status: Invitation to Comment The objective of this project is to develop a comprehensive application model for the classification, recognition and measurement of revenues and expenses The project is anticipated to produce a Statement during 2023

95 Other Revenue Expense Recognition Pre Agenda Research Added to Agenda Initial Deliberations Preliminary views Preliminary views and comment Preliminary views/ re deliberation s Exposure Draft Exposure Draft Invitation to Comment Revenue and Expense Recognition 95

96 Other Two new GASB s expected this year Capitalization of Interest Equity Interest Payments

97 Thank you!