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Future Accounting Standard Changes-Continued <br /> GASB Statement No.79- Certain External Investment Pools and Pool Participants <br /> Summary <br /> This Statement addresses accounting and financial reporting for certain external investment pools and pool participants. <br /> Specifically,it establishes criteria for an external investment pool to qualify for making the election to measure all of its <br /> investments at amortized cost for financial reporting purposes.An external investment pool qualifies for that reporting if it meets <br /> all of the applicable criteria established in this Statement.The specific criteria address(1)how the external investment pool <br /> transacts with participants;(2)requirements for portfolio maturity,quality,diversification,and liquidity;and(3)calculation and <br /> requirements of a shadow price. Significant noncompliance prevents the external investment pool from measuring all of its <br /> investments at amortized cost for financial reporting purposes.Professional judgment is required to determine if instances of <br /> noncompliance with the criteria established by this Statement during the reporting period,individually or in the aggregate,were <br /> significant. <br /> If an external investment pool does not meet the criteria established by this Statement,that pool should apply the provisions in <br /> paragraph 16 of Statement No. 31,Accounting and Financial Reporting for Certain Investments and for External Investment <br /> Pools,as amended.If an external investment pool meets the criteria in this Statement and measures all of its investments at <br /> amortized cost,the pool's participants also should measure their investments in that external investment pool at amortized cost for <br /> financial reporting purposes. If an external investment pool does not meet the criteria in this Statement,the pool's participants <br /> should measure their investments in that pool at fair value,as provided in paragraph 11 of Statement 31,as amended. <br /> This Statement establishes additional note disclosure requirements for qualifying external investment pools that measure all of <br /> their investments at amortized cost for financial reporting purposes and for governments that participate in those pools.Those <br /> disclosures for both the qualifying external investment pools and their participants include information about any limitations or <br /> restrictions on participant withdrawals. <br /> Effective Date <br /> The requirements of this Statement are effective for reporting periods beginning after June 15,2015,except for the provisions in <br /> paragraphs 18, 19,23-26,and 40,which are effective for reporting periods beginning after December 15,2015. <br /> How the Changes in This Statement Will Improve Financial Reporting <br /> This Statement will enhance comparability of financial statements among governments by establishing specific criteria used to <br /> determine whether a qualifying external investment pool may elect to use an amortized cost exception to fair value measurement. <br /> Those criteria will provide qualifying external investment pools and participants in those pools with consistent application of an <br /> amortized cost-based measurement for financial reporting purposes.That measurement approximates fair value and mirrors the <br /> operations of external investment pools that transact with participants at a stable net asset value per share. <br /> (l)Note.From GASB Pronouncements Summaries.Copyright 2015 by the Financial Accounting Foundation,401 Merritt 7,Norwalk, <br /> CT 06856,USA,and is reproduced with permission. <br /> People <br /> +Process. <br /> (.oirrg <br /> l3ewru I th <br /> \wither s <br /> 173 <br />