4.1 ERMUSR 04-11-2017 - Laserfiche WebLink

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Future Accounting Standard Changes-Continued Effective Date The requirements of this Statement are effective for reporting periods beginning after June 15,2016. Earlier application is encouraged. How the Changes in This Statement Will Improve Financial Reporting The requirements of this Statement enhance the comparability of financial statements among governments. Greater comparability improves the decision-usefulness of information reported in financial statements and enhances its value for assessing government accountability. GASB Statement No.81-Irrevocable Split-Interest Agreements Summary The objective of this Statement is to improve accounting and financial reporting for irrevocable split-interest agreements by providing recognition and measurement guidance for situations in which a government is a beneficiary of the agreement. Split-interest agreements are a type of giving agreement used by donors to provide resources to two or more beneficiaries, including governments. Split-interest agreements can be created through trusts-or other legally enforceable agreements with characteristics that are equivalent to split-interest agreements-in which a donor transfers resources to an intermediary to hold and administer for the benefit of a government and at least one other beneficiary.Examples of these types of agreements include charitable lead trusts,charitable remainder trusts,and life-interests in real estate. This Statement requires that a government that receives resources pursuant to an irrevocable split-interest agreement recognize assets,liabilities,and deferred inflows of resources at the inception of the agreement.Furthermore,this Statement requires that a government recognize assets representing its beneficial interests in irrevocable split-interest agreements that are administered by a third party,if the government controls the present service capacity of the beneficial interests.This Statement requires that a government recognize revenue when the resources become applicable to the reporting period. Effective Date The requirements of this Statement are effective for financial statements for periods beginning after December 15,2016,and should be applied retroactively.Earlier application is encouraged. How the Changes in This Statement Will Improve Financial Reporting This Statement enhances the comparability of financial statements by providing accounting and financial reporting guidance for irrevocable split-interest agreements in which a government is a beneficiary.This Statement also enhances the decision- usefulness of general purpose external financial reports,and their value for assessing accountability,by more clearly identifying the resources that are available for the government to carry out its mission. GASB Statement No.82- Pension Issues an Amendment of GASB Statements No. 67,No. 68, and No. 73 Summary The objective of this Statement is to address certain issues that have been raised with respect to Statements No.67,Financial Reporting for Pension Plans,No.68,Accounting and Financial Reporting for Pensions,and No.73,Accounting and Financial Reporting for Pensions and Related Assets That Are Not within the Scope of GASB Statement 68,and Amendments to Certain Provisions of GASB Statements 67 and 68.Specifically,this Statement addresses issues regarding(1)the presentation of payroll- related measures in required supplementary information,(2)the selection of assumptions and the treatment of deviations from the guidance in an Actuarial Standard of Practice for financial reporting purposes,and(3)the classification of payments made by employers to satisfy employee(plan member)contribution requirements. People +Process. Gomg BeyondTe -11- `lumbers 77