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Future Accounting Standard Changes-Continued <br /> GASB Statement No.68- The Accounting and Financial Reporting of Pensions-an Amendment of GASB Statement No. 27 <br /> The primary objective of this Statement is to improve accounting and financial reporting by state and local governments for <br /> pensions. It also improves information provided by state and local governmental employers about financial support for pensions <br /> that is provided by other entities.This Statement results from a comprehensive review of the effectiveness of existing standards of <br /> accounting and financial reporting for pensions with regard to providing decision-useful information,supporting assessments of <br /> accountability and interperiod equity,and creating additional transparency. <br /> This Statement replaces the requirements of Statement No.27,Accounting for Pensions by State and Local Governmental <br /> Employers,as well as the requirements of Statement No. 50,Pension Disclosures,as they relate to pensions that are provided <br /> through pension plans administered as trusts or equivalent arrangements(hereafter jointly referred to as trusts)that meet certain <br /> criteria.The requirements of Statements 27 and 50 remain applicable for pensions that are not covered by the scope of this <br /> Statement. <br /> This Statement is effective for fiscal years beginning after June 15,2014.Earlier application is encouraged. <br /> How the Changes in This Statement Will Improve Financial Reporting <br /> The requirements of this Statement will improve the decision-usefulness of information in employer and governmental <br /> nonemployer contributing entity financial reports and will enhance its value for assessing accountability and interperiod equity by <br /> requiring recognition of the entire net pension liability and a more comprehensive measure of pension expense.Decision- <br /> usefulness and accountability also will be enhanced through new note disclosures and required supplementary information. <br /> GASB Statement No.69-Government Combinations and Disposals of Government Operations <br /> Summary <br /> This Statement establishes accounting and financial reporting standards related to government combinations and disposals of <br /> government operations.As used in this Statement,the term government combinations include a variety of transactions referred to <br /> as mergers,acquisitions,and transfers of operations. <br /> The distinction between a government merger and a government acquisition is based upon whether an exchange of significant <br /> consideration is present within the combination transaction.Government mergers include combinations of legally separate entities <br /> without the exchange of significant consideration.This Statement requires the use of carrying values to measure the assets and <br /> liabilities in a government merger.Conversely,government acquisitions are transactions in which a government acquires another <br /> entity,or its operations,in exchange for significant consideration.This Statement requires measurements of assets acquired and <br /> liabilities assumed generally to be based upon their acquisition values.This Statement also provides guidance for transfers of <br /> operations that do not constitute entire legally separate entities and in which no significant consideration is exchanged.This <br /> Statement defines the term operations for purposes of determining the applicability of this Statement and requires the use of <br /> carrying values to measure the assets and liabilities in a transfer of operations. <br /> A disposal of a government's operations results in the removal of specific activities of a government.This Statement provides <br /> accounting and financial reporting guidance for disposals of government operations that have been transferred or sold. <br /> This Statement requires disclosures to be made about government combinations and disposals of government operations to enable <br /> financial statement users to evaluate the nature and financial effects of those transactions. <br /> The requirements of this Statement are effective for government combinations and disposals of government operations occurring <br /> in financial reporting periods beginning after December 15,2013,and should be applied on a prospective basis.Earlier <br /> application is encouraged. <br /> How the Changes in This Statement Will Improve Financial Reporting <br /> Until now,governments have accounted for mergers,acquisitions,and transfers of operations by analogizing to accounting and <br /> financial reporting guidance intended for the business environment,generally APB Opinion No. 16,Business Combinations.This <br /> Statement provides specific accounting and financial reporting guidance for combinations in the governmental <br /> environment.This Statement also improves the decision usefulness of financial reporting by requiring that <br /> disclosures be made by governments about combination arrangements in which they engage and for disposals of People <br />• government operations. +Profess. <br /> Co1I1 <br /> Be\(11l(Ithr <br /> Va ii hers <br /> 49 <br /> • <br />