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Future Accounting Standard Changes (Continued) <br /> Effective Date <br /> The requirements of this Statement are effective for reporting periods beginning after June 15, 2018. Earlier application is <br /> encouraged. <br /> How the Changes in This Statement Will Improve Financial Reporting <br /> This Statement will enhance comparability of financial statements among governments by establishing uniform criteria for <br /> governments to recognize and measure certain AROs, including obligations that may not have been previously reported. <br /> This Statement also will enhance the decision-usefulness of the information provided to financial statement users by <br /> requiring disclosures related to those AROs. <br /> GASB Statement No. 84-Fiduciary Activities <br /> Summary <br /> The objective of this Statement is to improve guidance regarding the identification of fiduciary activities for accounting and <br /> financial reporting purposes and how those activities should be reported. <br /> This Statement establishes criteria for identifying fiduciary activities of all state and local governments. The focus of the <br /> criteria generally is on (1)whether a government is controlling the assets of the fiduciary activity and (2)the beneficiaries <br /> with whom a fiduciary relationship exists. Separate criteria are included to identify fiduciary component units and <br /> postemployment benefit arrangements that are fiduciary activities. <br /> An activity meeting the criteria should be reported in a fiduciary fund in the basic financial statements. Governments with <br /> activities meeting the criteria should present a statement of fiduciary net position and a statement of changes in fiduciary <br /> net position.An exception to that requirement is provided for a business-type activity that normally expects to hold <br /> custodial assets for three months or less. <br /> This Statement describes four fiduciary funds that should be reported, if applicable: (1) pension (and other employee <br /> benefit)trust funds, (2) investment trust funds, (3) private-purpose trust funds, and (4) custodial funds. Custodial funds <br /> generally should report fiduciary activities that are not held in a trust or equivalent arrangement that meets specific criteria. <br /> A fiduciary component unit, when reported in the fiduciary fund financial statements of a primary government, should <br /> combine its information with its component units that are fiduciary component units and aggregate that combined <br /> information with the primary government's fiduciary funds. <br /> This Statement also provides for recognition of a liability to the beneficiaries in a fiduciary fund when an event has <br /> occurred that compels the government to disburse fiduciary resources. Events that compel a government to disburse <br /> fiduciary resources occur when a demand for the resources has been made or when no further action, approval, or <br /> condition is required to be taken or met by the beneficiary to release the assets. <br /> Effective Date <br /> The requirements of this Statement are effective for reporting periods beginning after December 15, 2018. Earlier <br /> application is encouraged. <br /> How the Changes in This Statement Will Improve Financial Reporting <br /> The requirements of this Statement will enhance consistency and comparability by(1)establishing specific criteria for <br /> identifying activities that should be reported as fiduciary activities and (2) clarifying whether and how business-type <br /> activities should report their fiduciary activities. Greater consistency and comparability enhances the value provided by the <br /> information reported in financial statements for assessing government accountability and stewardship. <br /> People <br /> +Process. <br /> Going <br /> I3ev and the <br /> 6 Nutithe s <br /> 84 <br />