GASB Statements
WHAT DO THEY MEAN TO YOU?
HEIDI E. WHITE, CPA
PARTNER
VAVRINEK, TRINE, DAY & CO., LLP
OCTOBER 2, 2014
GASB Statements
 Overview of Governmental Accounting Standards
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Board
Recent Proposals and Pronouncements
Impact to the District Report
Do These Pronouncements Really Matter to the
District?
How Can You Stay Informed?
Assisting the Board and Management with
Understanding Standards
GASB Statements
 Overview of the Governmental Accounting Standards
Board
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Formed to provide greater accountability and well informed
decision making through excellence in public sector financial
reporting
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Mission is to establish and improved standards of state and local
governmental accounting and financial reporting that will:

Result in useful information for users
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Guide and Educate the public, including issuers, auditors and
users of the financial statements
GASB Statements
 Overview of the Governmental Accounting Standards
Board
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GASB is an independent organization that establishes and
improves standard of accounting and reporting for US State and
Local Governmental Agencies.
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Pronouncements and Standards are not federal laws and
regulations, however compliance is enforced through
requirements of individual agencies and the audit process when
opinions are rendered on the fairness of presentation in
conformity with GAAP.
GASB Standards
 Recent Proposals and Pronouncements
 How Many GASB Pronouncements are there?
71
 What was the first one and when was it issued?
Statement 1 Gave Authority to GASB and AICPA
Industry Audit Guide Issued July 1984
GASB Standards
 What is the most recent Pronouncement?
GASB Statement 71: Pension Transition for
Contributions Made Subsequent to the
Measurement Date – an amendment of GASB
Statement 68.
To be applied simultaneously with the provisions of
GASB Statement 68
GASB
Statements
Statement that
will be applicable
to the June 30
2014 Annual
Audited Financial
Statements:
GASB Statement 65: Items Previously
Reported as Assets and Liabilities
•Reclassifies as “Deferred Outflows of Resources” or
“Deferred Inflows of Resources” certain items that
were preciously reported as Assets and Liabilities.
Also limits the use of the term Deferred in financial
statement presentations.
•Impact is there will be restatements of the
Beginning Net Asset Balances for the 2013-14
audited financial statements
GASB
Statements
GASB Statement 65: Items Previously
Reported as Assets and Liabilities
•Examples of Deferred Outflows:
Statement that
will be applicable
to the June 30
2014 Annual
Audited Financial
Statements:
Deferred loss on refunding of debt
•Examples of Deferred Inflows:
Grants received in advance of time or
spending requirements
Deferred gain on refunding of debt
•Other Impacts:
Deferred issuance costs from debt issuances
Previously – Capitalized and amortized over the life
of the debt. With GASB 65 implementation, debt
issuance costs no longer meet the definition of an
“asset”. GASB 65 requires these to now be recognized
as an expense in the period incurred.
GASB Standards
 Statements to be Implemented in 2014-15
GASB Statement 68: Accounting and Financial
Reporting for Pensions—an amendment of GASB
Statement No. 27
GASB Statement 71: Pension Transition for
Contributions Made Subsequent to the
Measurement Date – an amendment of GASB
Statement 68.
GASB Standards
 Do these Pronouncements Really Matter to the
District?
YES
Federal and State Agencies review the annual audited
financial statements for compliance with GAAP
Bond rating agencies are reviewing for consistency across
types of governmental agencies
Every new pronouncement is noted to “…improve the
decision-usefulness of information in financial
reporting and enhance the value of external reporting”
GASB Standards
 Do these Pronouncements Really Matter to the
District?
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The Financial Statements, including Notes, presented in the
Annual Financial Statements are the responsibility of the
District.
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Management signs a Representation Letter
Standards require the Auditor to assess the “Knowledge, Skills
and Ability” of those taking responsibility for the financial
statements.
GASB Standards
 How does the District Stay Informed?
 Online – GASB.org provides access to Standards,
Implementation Guides, Reference Materials, and Future
Projects. Also provides a Forum for discussions on
potential topics.
 Technical Conferences – both the AICPA and California
Society of CPA’s offer conferences and training, as does
the CCIA, ACBO and other industry organizations
 Your District CPA – Information on required accounting
standards and disclosures should be part of your routine
discussions.
GASB Standards
 Assisting the Board and Management with
Understanding Standards
 Consider a Study Session with members of the Board
to inform and clarify new accounting standards and
the implications to the District’s Report
 Entrance and Exit meetings during the course of the
audit become essential to understanding the
required disclosures and potential restatements.
GASB Standards
 What is Coming Next?????
 Fair Value Measurements and Applications---Exposure Draft has been issued with comment deadline of 8/15/2014
 Asset Retirement Obligations ---- Currently being
Deliberated
 Blending Requirements for Certain Business Type
Activities --- Currently being Deliberated