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j Elk River Municipal Utilities <br /> May 6,2013 <br /> Page 7 <br /> ��Jt• <br /> Future Accounting Standard Changes <br /> The following Governmental Accounting Standards Board(GASB) Statements have been issued and may have an impact on future <br /> City financial statements. <br /> GASB Statement No.61 -The Financial Reporting Entity: Omnibus an Amendment of GASH Statements No. 14 and No. 34 <br /> Summary <br /> The objective of this Statement is to improve financial reporting for a governmental financial reporting entity. The requirements <br /> of Statement No. 14 and the related financial reporting requirements of Statement No. 34,were amended to better meet user needs <br /> and to address reporting entity issues that have arisen since the issuance of those Statements. <br /> This Statement modifies certain requirements for inclusion of component units in the financial reporting entity. This Statement <br /> also amends the criteria for reporting component units as if they were part of the primary government(that is,blending)in certain <br /> circumstances. <br /> This Statement clarifies the reporting of equity interests in legally separate organizations as well. It requires a primary <br /> government to report its equity interest in a component unit as an asset. <br /> The provisions of this Statement are effective for financial statements for periods beginning after June 15,2012. Earlier <br /> application is encouraged. <br /> How the Changes in This Statement Will Improve Financial Reporting <br /> The requirements of this Statement result in financial reporting entity financial statements being more relevant by improving <br /> guidance for including,presenting,and disclosing information about component units and equity interest transactions of a <br /> financial reporting entity. <br /> 952.835.9090 • Fax 952.835.3261 <br /> www.aemcpas.com <br /> • <br />