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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 />GASB Statement No. 80 - Blending Requirements for Certain Component Units - an Amendment of GASB Statement No. 14 <br />Summary <br />The objective of the Statement is to improve financial reporting by clarifying the financial statement presentation requirements for <br />certain component units. This Statement amends the blending requirements established in paragraph 53 of Statement No. 14, <br />The Financial Reporting Entity, as amended. <br />This Statement amends the blending requirements for the financial statement presentation of component units of all state and local <br />governments. The additional criterion requires blending of a component unit incorporated as a not-for-profit corporation in which <br />the primary government is the sole corporate member. The additional criterion does not apply to component units included in the <br />financial reporting entity pursuant to the provisions of Statement No. 39, Determining Whether Certain Organizations Are <br />Component Units. <br />People <br />+Process® <br />GOO, 9 <br />Beyondthe <br />-25- Ntuiibers <br />