GASB Issues Two New Exposure Drafts

The Governmental Accounting Standards Board (GASB) has published two new exposure drafts (EDs) for comment. One relates to "Accounting and Financial Reporting for Impairment of Capital Assets and for Insurance Recoveries." The other is entitled "Budgetary Comparison Schedules -- Perspective Differences."

The first ED would require governments to report the effects of capital asset impairment in their financial statements when they occur. "Capital assets represent the largest category of assets on the statement of net assets of most governments," explains GASB Project Manager Roberta E. Reese. She adds, "The public has long expressed concern about the condition of those capital assets, especially roads and bridges, sewer and water systems, and schools."

Under GASB's proposal, capital assets would be reviewed periodically to see if they have been impaired due to such factors as physical damage, changes in legal or environmental factors, and technological changes or obsolescence. The ED would also require that all governments use uniform techniques to account for insurance recoveries. The effective date for the changes proposed in this ED would be for fiscal years beginning after December 15, 2004.

The second ED would apply to governments with budgetary structures that prevent them from being able to present budgetary comparison information for their general funds and major special revenue funds, as currently required by GASB Statement 34. The proposal would require that the budgetary comparison schedules be presented as supplementary information based on the fund, organization or program structure that the government uses for its legally adopted budget.

The changes proposed in this ED would be implemented simultaneously with GASB Statement 34. For governments that have already implemented Statement 34, the requirements would be effective for periods beginning after June 15, 2002.

The comment period for both EDs ends on February 28, 2003. Copies may be obtained by telephoning the GASB Order Department at 800-748-0659.

You may like these other stories...

A proposal issued by the Governmental Accounting Standards Board (GASB) last week explains how fair value measurement should be defined for state and local government financial reporting.The exposure draft, Fair Value...
By Jason Bramwell The board of trustees of the Financial Accounting Foundation (FAF) finalized a new policy on November 19 that provides the Governmental Accounting Standards Board (GASB) with direction on what...
By Jason Bramwell The Governmental Accounting Standards Board (GASB) is now offering a free online toolkit designed to assist preparers and auditors of state and local government pension plans with implementing new...

Already a member? log in here.

Upcoming CPE Webinars

Sep 24
In this jam-packed presentation Excel expert David Ringstrom, CPA will give you a crash-course in creating spreadsheet-based dashboards. A dashboard condenses large amounts of data into a compact space, yet enables the end user to easily drill down into details when warranted.
Sep 30
This webcast will include discussions of important issues in SSARS No. 19 and the current status of proposed changes by the Accounting and Review Services Committee in these statements.
Oct 21
Kristen Rampe will share how to speak and write more effectively by understanding your own and your audience's communication style.
Oct 23
Amber Setter will show the value of leadership assessments as tools for individual and organizational leadership development initiatives.