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FutureAccounting Standard Changes (Continued) <br />How the Changes in This Statement Will ImproveAccounting and FinancialReporting <br />The requirements of this Statement willimprove financial reporting by eliminating the existing option for issuers to report <br />conduit debtobligations astheirownliabilities, thereby ending significantdiversityin practice. The clarifieddefinitionwill <br />resolve stakeholders’ uncertaintyas towhetheragiven financing is,in fact, a conduitdebt obligation. Requiring issuers to <br />recognize liabilities associatedwithadditional commitments extendedbyissuersand to recognizeassets and deferred <br />inflows of resources related to certain arrangements associatedwith conduit debtobligations alsowill eliminate diversity, <br />therebyimproving comparability in reporting byissuers. Revised disclosure requirements willprovide financial statement <br />users withbetter information regarding the commitments issuers extendand the likelihood that theywill fulfillthose <br />commitments. That informationwillinform users of the potentialimpact of such commitmentson the financialresources of <br />issuersandhelp users assess issuers’ rolesin conduit debtobligations. <br />(1) <br />Note. From GASBPronouncements Summaries. Copyright2019bytheFinancial AccountingFoundation,401 Merritt 7, <br />Norwalk, CT 06856, USA,andis reproducedwith permission. <br />* *** * <br />Restriction on Use <br />Thiscommunicationis intended solely for theinformationand use ofthePublic Utilities Commission,CityCouncil, <br />management,and the Minnesota Office of the StateAuditorandis not intended tobe and should not be usedbyanyone <br />other thanthese specifiedparties. <br />Thecommentsand recommendationsin this report are purely constructiveinnature, and should be read in this context. <br />Our auditwould not necessarily discloseallweaknesses in the system because it was based on selected tests of <br />accounting recordsand related data. <br />Ifyou have anyquestionsor wish todiscuss any of the items containedin this letter, please feel free to contact us atyour <br />convenience.We wish to thankyou for theopportunityto be of serviceand for thecourtesy and cooperation extended to <br />us byyour staff. <br />ABDO, EICK &MEYERS, LLP <br />Minneapolis, Minnesota <br />7 <br />90 <br />