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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: (1) <br />GASB Statement No. 72 - Fair Value Measurement and Application <br />Summary <br />This statement addresses accounting and financial reporting issues related to fair value measurements. The definition of fair value <br />is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market <br />participants at the measurement date. This Statement provides guidance for determining a fair value measurement for financial <br />reporting purposes. This Statement also provides guidance for applying fair value to certain investments and disclosures related to <br />all fair value measurements. <br />Effective Date and Transition <br />The requirements of this Statement are effective for financial statements for periods beginning after June 15, 2015. Earlier <br />application is encouraged. <br />How the Changes in This Statement Will Improve Financial Reporting <br />The requirements of this Statement will enhance comparability of financial statements among governments by requiring <br />measurement of certain assets and liabilities at fair value using a consistent and more detailed definition of fair value and accepted <br />valuation techniques. This Statement also will enhance fair value application guidance and related disclosures in order to provide <br />information to financial statement users about the impact of fair value measurements on a government's financial position. <br />GASB Statement No. 73 - Accounting and financial reporting for pension and related assets that are not within the scope of <br />GASB Statement No. 68, and amendments to certain provisions of GASB Statements No. 67 and No. 68 <br />Summary <br />The objective of this Statement is to improve the usefulness of information about pensions included in the general purpose <br />external financial reports of state and local governments for making decisions and assessing accountability. This Statement results <br />from a comprehensive review of the effectiveness of existing standards of accounting and financial reporting for all <br />postemployment benefits with regard to providing decision -useful information, supporting assessments of accountability and <br />interperiod equity, and creating additional transparency. <br />This Statement establishes requirements for defined benefit pensions that are not within the scope of Statement No. 68, <br />Accounting and Financial Reporting for Pensions, as well as for the assets accumulated for purposes of providing those pensions. <br />In addition, it establishes requirements for defined contribution pensions that are not within the scope of Statement 68. It also <br />amends certain provisions of Statement No. 67, Financial Reporting for Pension Plans, and Statement 68 for pension plans and <br />pensions that are within their respective scopes. <br />The requirements of this Statement extend the approach to accounting and financial reporting established in Statement 68 to all <br />pensions, with modifications as necessary to reflect that for accounting and financial reporting purposes, any assets accumulated <br />for pensions that are provided through pension plans that are not administered through trusts that meet the criteria specified in <br />Statement 68 should not be considered pension plan assets. It also requires that information similar to that required by Statement <br />68 be included in notes to financial statements and required supplementary information by all similarly situated employers and <br />nonemployer contributing entities. <br />This Statement also clarifies the application of certain provisions of Statements 67 and 68 with regard to the following issues: <br />1. Information that is required to be presented as notes to the 10 -year schedules of required supplementary information <br />about investment -related factors that significantly affect trends in the amounts reported. <br />2. Accounting and financial reporting for separately financed specific liabilities of individual employers <br />and nonemployer contributing entities for defined benefit pensions. <br />People <br />3. Timing of employer recognition of revenue for the support of nonemployer contributing entities not in +process® <br />a special funding situation. Going <br />Beyondthe <br />-19- Ntuiibers <br />