Jul 18th 2013
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By Jason Bramwell
A post-implementation review will be conducted on a Governmental Accounting Standards Board (GASB) accounting and financial reporting standard for state and local governments regarding the impairment of capital assets and insurance recoveries, according to the Financial Accounting Foundation (FAF) on July 17.
Issued in 2003, GASB Statement No. 42, Accounting and Financial Reporting for Impairment of Capital Assets and for Insurance Recoveries, establishes measurement guidance for capital asset impairments and requires governments to report the effects of those impairments when they occur, rather than as a part of the ongoing depreciation expense for the capital asset or upon disposal of the capital asset.
The standard also provides uniform reporting guidance for insurance recoveries of state and local governments.
Stakeholders who would like the opportunity to participate in post-implementation review surveys on GASB Statement No. 42, conducted by an independent survey firm on behalf of the FAF, can register on the FAF website.
Also, the FAF expects to issue a report in August on a recently completed post-implementation review of two GASB financial reporting standards for risk financing and insurance-related activities of state and local governments, including risk pools: GASB Statement No. 10, Accounting and Financial Reporting for Risk Financing and Related Insurance Issues, and GASB Statement No. 30, Risk Financing Omnibus.