Laserfiche WebLink
Future Accounting Standard Changes (Continued) <br />This Statement requires disclosure in notes to financial statements of descriptive information about accounting changes <br />and error corrections, such as their nature. In addition, information about the quantitative effects on beginning balances <br />of each accounting change and error correction should be disclosed by reporting unit in a tabular format to reconcile <br />beginning balances as previously reported to beginning balances as restated. <br />Furthermore, this Statement addresses how information that is affected by a change in accounting principle or error <br />correction should be presented in required supplementary information (RSI) and supplementary information (SI). For <br />periods that are earlier than those included in the basic financial statements, information presented in RSI or SI should be <br />restated for error corrections, if practicable, but not for changes in accounting principles. <br />Effective Date and Transition <br />The requirements of this Statement are effective for accounting changes and error corrections made in fiscal years <br />beginning after June 15, 2023, and all reporting periods thereafter. Earlier application is encouraged. <br />How the Changes in This Statement Will Improve Accounting and Financial Reporting <br />The requirements of this Statement will improve the clarity of the accounting and financial reporting requirements for <br />accounting changes and error corrections, which will result in greater consistency in application in practice. In turn, more <br />understandable, reliable, relevant, consistent, and comparable information will be provided to financial statement users <br />for making decisions or assessing accountability. In addition, the display and note disclosure requirements will result in <br />more consistent, decision useful, understandable, and comprehensive information for users about accounting changes <br />and error corrections. <br />GASB Statement No. 101 - Compensated Absences <br />Summary <br />The objective of this Statement is to better meet the information needs of financial statement users by updating the <br />recognition and measurement guidance for compensated absences. That objective is achieved by aligning the recognition <br />and measurement guidance under a unified model and by amending certain previously required disclosures. <br />This Statement requires that liabilities for compensated absences be recognized for (1) leave that has not been used and <br />(2) leave that has been used but not yet paid in cash or settled through noncash means. A liability should be recognized <br />for leave that has not been used if (a) the leave is attributable to services already rendered, (b) the leave accumulates, and <br />(c) the leave is more likely than not to be used for time off or otherwise paid in cash or settled through noncash means. <br />Leave is attributable to services already rendered when an employee has performed the services required to earn the <br />leave. Leave that accumulates is carried forward from the reporting period in which it is earned to a future reporting <br />period during which it may be used for time off or otherwise paid or settled. In estimating the leave that is more likely than <br />not to be used or otherwise paid or settled, a government should consider relevant factors such as employment policies <br />related to compensated absences and historical information about the use or payment of compensated absences. <br />However, leave that is more likely than not to be settled through conversion to defined benefit postemployment benefits <br />should not be included in a liability for compensated absences. <br />This Statement requires that a liability for certain types of compensated absences —including parental leave, military <br />leave, and jury duty leave —not be recognized until the leave commences. This Statement also requires that a liability for <br />specific types of compensated absences not be recognized until the leave is used. <br />This Statement also establishes guidance for measuring a liability for leave that has not been used, generally using an <br />employee's pay rate as of the date of the financial statements. A liability for leave that has been used but not yet paid or <br />settled should be measured at the amount of the cash payment or noncash settlement to be made. Certain salary -related <br />payments that are directly and incrementally associated with payments for leave also should be included in the <br />measurement of the liabilities. <br />Abdcl c!"nllU1Ucrii cuc t <br />W <br />