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City of Elk River <br />Emerging Issues <br />Accounting Standard Update — GASB Statement No. 100 —Accounting Changes and Error <br />Corrections — an Amendment of GASB Statement No. 62 (Continued) <br />This Statement also requires that the aggregate amount of adjustments to and restatements of beginning <br />net position, fund balance, or fund net position, as applicable, be displayed by reporting unit in the <br />financial statements. <br />This Statement requires disclosure in notes to financial statements of descriptive information about <br />accounting changes and error corrections, such as their nature. In addition, information about the <br />quantitative effects on beginning balances of each accounting change and error correction should be <br />disclosed by reporting unit in a tabular format to reconcile beginning balances as previously reported to <br />beginning balances as restated. <br />Furthermore, this Statement addresses how information that is affected by a change in accounting <br />principle or error correction should be presented in required supplementary information (RSI) and <br />supplementary information (SI). For periods that are earlier than those included in the basic financial <br />statements, information presented in RSI or SI should be restated for error corrections, if practicable, but <br />not for changes in accounting principles. <br />GASB Statement No. 100 is effective for reporting periods beginning after June 15, 2023. Earlier <br />application is encouraged. <br />Information provided above was obtained from www.gasb.org. <br />Accounting Standard Update — GASB Statement No. 101— Compensated Absences <br />The objective of this Statement is to better meet the information needs of financial statement users by <br />updating the recognition and measurement guidance for compensated absences. That objective is <br />achieved by aligning the recognition and measurement guidance under a unified model and by amending <br />certain previously required disclosures. <br />This Statement requires that liabilities for compensated absences be recognized for (1) leave that has not <br />been used and (2) leave that has been used but not yet paid in cash or settled through noncash means. A <br />liability should be recognized for leave that has not been used if (a) the leave is attributable to services <br />already rendered, (b) the leave accumulates, and (c) the leave is more likely than not to be used for time <br />off or otherwise paid in cash or settled through noncash means. Leave is attributable to services already <br />rendered when an employee has performed the services required to earn the leave. Leave that <br />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 <br />is more likely than not to be used or otherwise paid or settled, a government should consider relevant <br />factors such as employment policies related to compensated absences and historical information about <br />the use or payment of compensated absences. However, leave that is more likely than not to be settled <br />through conversion to defined benefit postemployment benefits should not be included in a liability for <br />compensated absences. <br />27 <br />