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<br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br />!J <br /> <br /> <br />City of Elk River <br />March 13, 2008 <br />Page 23 <br />Future Accounting Standard Changes <br />The following Governmental Accounting Standards Board (GASH) Statements have been issued and may have an impact on <br />future City financial statements: <br />GASB Statement No. 45 - Accounting and Fzhancial Reporting by Employers,/or Post employment Benefzts Ofher Than <br />Pensions <br />This statement is effective in three phases based on a government's total amtual revenues in the first fiscal year ending <br />after June 15, 1999: <br />Governments that were phase 1 governments for the purpose of implementation of Statement No. 34 -those with <br />a~mual revenues of $ ] 00 million or more -are required to implement this Statement in financial statements for <br />periods beginning after December 15, 2006. <br />• Governments that were phase 2 governments for the purpose of implementation of Statement No. 34 -those with <br />total annual revenues of $10 million or more but less than $100 milbou -are required to implement this Statement in <br />financial statements for periods beginnine after December 15, 2007. <br />• Govennnents that were phase 3 governments for the purpose of implementation of Statement No. 34 -those with <br />total annual revenues of less than $I O million -are required to implement this Statement in financial statements for <br />periods beginning after -ecember 15, 2008. <br />Statement No. 45 gives the following summary, "In addition to pensions, many state and local govermnental employers <br />provide other post employment benefits (OPEB) as part of the total compensation offered to attract and retain the <br />services of quali~Iied employees. OPEB includes post employment healthcare, as well as other forms of post employment <br />benefits (for esauiple, life insurance) when provided separately from a pension plan. This Statement establishes <br />standards for the measurement, recognition, and display of OPEB expense/expenditures and related liabilities (assets), <br />note disclosures, and, if applicable, required supplementary information (RSI) fn the financial reports of state and local <br />governmental employers." <br />GASH Statement No. 48 -Sales and Pledges of Receivables and Fe¢ure Revenues and lnh~a-F_ntity Transfers of Assets <br />and Fa¢ure Revenues <br />This statement was issued September 2006 and is effective for periods beginning after December 15, 2006_ Therefore, <br />this statement has been implemented for the current financial statements. <br />This standard provides accounting guidance for when certain transactions-such as the sale of delinquent taxes, certain <br />mortgages, student loans, or future revenues such as [hose arising from tobacco settlement agreements-should be regarded <br />as a sale or a collateralized borrowing. The financial reporting question addressed in Statement No. A8 is whether such <br />transactions should be reported as a sale or collateralized borrowing. <br />In addition to clarifying guidance on accounting for sales and pledges of receivables and future revenues, Statement No. <br />48 (1) requires enhanced disclosures pertaining to furore revenues [hat have been pledged or sold; (2) provides guidance <br />on the sales of receivables and future revenues within the same Financial reporting entity; and (3) provides guidance on <br />recognizing other assets and liabilities arising from the sale of specific receivables or fuNre revenues. <br /> <br /> <br />952.835.9090 Fax 952.835.3261 <br />www.uemcpas.com <br />