GASB Update
AGFOA
April, 2012
Overview
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Statement 61 – Reporting Entity Omnibus
Statement 62 – Pre-89 FASB and AICPA
Pronouncements
Statement 63 – Financial Reporting of
Deferred Outflows of Resources, Deferred
Inflows of Resources, and Net Position
Statement 64 – Derivative Instruments
Statement 65 – Elements of Financial
Statements
Statement 66 – Technical Corrections
Other
Preliminary Views Document - Economic
Condition Reporting
 OMB Advance Notice
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Effective For…
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2012
◦ Statement 64
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2013
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Statement 61
Statement 62
Statement 63
Statement 65
Statement 66
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Statement 61
The Financial Reporting Entity: Omnibus
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Significant Changes
Increase the emphasis on financial
relationships
 Blending considerations
 Clarify the recognition of ownership
interests in
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◦ Joint ventures
◦ Component units
◦ Investments
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What Does This Really Mean?
Some CU’s won’t be
 Some CU’s will be different
 Financial vs. governance
 Consider risk of being “misleading”
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Statement 62
Pre-1989 FASB and AICPA Pronouncements
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Reason for the Statement
Since FASB adopted its new codification,
its original pronouncements are nonauthoritative
 Eliminates reference to application of preNovember 30, 1989, FASB
pronouncements, unless they conflict with
or contradict GASB pronouncements
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Statement 63
Deferred Outflows, Deferred Inflows, and Net
Position
Statement of Net Position
Deferred outflows of resources.
 Deferred inflows of resources.
 Classification – in process
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Net Position
Net investment in capital assets
 Restricted
 Unrestricted
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Disclosures
Details if not clear from face of
statements.
 Clarify significant impacts.
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Statement 64
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Derivative Instruments – Application of
Hedge Accounting Termination Provisions
– An Amendment of GASB Statement No.
53
Hedges and Terminations
Terminate and replace
 Questions around application of
termination provisions in GASB 53
 Effective hedge remain?
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Statement 65
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Deferrals limited to instances specifically
identified in authoritative pronouncements.
Guidance for reporting balances
Reclassifies certain items as deferred
outflows of resources and deferred inflows
of resources
Recognizes certain items reported as assets
and liabilities as outflows of resources and
inflows of resources.
Specifics
Assets
 Liabilities
 True to the definitions in Concepts
Statement 4
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What Changed?
Deferred gain/loss from refunding
 Debt issuance costs
 Initial direct costs of operating leases
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Major Fund Criteria
Combine assets and deferred outflows
 Combine liabilities and deferred inflows
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Statement 66
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Removes requirement for reporting in
General Fund or Internal Service Fund
Amends Statement No. 62, by modifying the
specific guidance on accounting for
◦ operating lease payments that vary from a
straight-line basis,
◦ the difference between the initial investment
(purchase price) and the principal amount of a
purchased loan or group of loans, and
◦ servicing fees related to mortgage loans that are
sold when the stated service fee rate differs
significantly from a current (normal) servicing fee
rate.
PV – Economic Condition
Reporting
General idea
 Right place to report?
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OMB Advance Notice
Change in threshold
 Single Audit Lite
 Streamlined audit requirements
 Subrecipient monitoring
 Compliance still required
 Comment Period through 4/30
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Questions?
Rob Moody 503.274.2849
rmoody@tkw.com
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