GASB Video Podcast Series

The GASB has posted the first in a series of informative video podcasts to its website. The four-minute video presentation features GASB Chairman Robert H. Attmore addressing a series of questions about Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions.

The new podcast series, which allows viewers not only to view the videos through the website but also to download and share them, will feature Board members and project staff members addressing new standards and pronouncements and other GASB topics in brief video presentations.

The GASB Video Podcast, Fund Balance Reporting, may be viewed at www.gasb.org.

GASB Issues Guide to Implementation of Statement 53

The Governmental Accounting Standards Board today issued its Guide to Implementation of Statement 53 on Derivative Instruments. The purpose of the guide is to assist preparers and auditors of governmental financial statements and those who advise them in implementing the GASB’s recently issued standard on accounting and financial reporting for derivative instruments.

The guide provides answers to more than 100 questions on topics relating to the implementation of Statement 53, including:

· Scope and applicability of Statement 53 with special emphasis on the normal purchases and normal sales scope exception;
· Definition of derivative instruments focusing on the distinguishing characteristics of a derivative instrument—settlement factors, leverage, and net settlement;
· Embedded derivative instruments, and when an embedded derivative instrument results in a hybrid instrument;
· Hedge effectiveness criteria, and how to apply the methods of evaluating effectiveness—the consistent critical terms, the synthetic instrument, the dollar-offset, and the regression analysis methods;
· Disclosures; and
· Effective date and transition.
In addition to the illustrations that were included in Statement 53, the journal entries that support the transactions in the illustrations have now been added.

Implementation of Statement 53 starts with fiscal years beginning after June 15, 2009.
The GASB Guide to Implementation of Statement 53 on Derivative Instruments is available for order by logging on to www.gasb.org.

GASB Issues Statement 56

The GASB today issued Statement No. 56, Codification of Accounting and Financial Reporting Guidance Contained in the AICPA Statements on Auditing Standards. This Statement incorporates accounting and financial reporting guidance previously only contained in the American Institute of Certified Public Accountants (AICPA) auditing literature into the GASB’s accounting and financial reporting literature for state and local governments. The Statement 56 guidance addresses three issues from the AICPA’s literature—related party transactions, going concern considerations, and subsequent events.

This Statement brings existing guidance (to the extent appropriate in a governmental environment) without substantive changes into the GASB’s body of standards. Statement 56 is part of the GASB’s effort to codify all generally accepted accounting principles for state and local governments so that they derive from a single source. This is intended to make it easier for preparers of state and local government financial statements to identify and apply relevant accounting guidance.Statement 56 is effective immediately. To obtain a copy of the Statement log on to www.gasb.org or call 1-800-748-0659

GASB Seeks Comment in Reexamination of Pension

The Governmental Accounting Standards Board (GASB) has issued an Invitation to Comment (ITC) on Pension Accounting and Financial Reporting. The ITC is intended to obtain feedback from constituents at an early stage of the Board’s reexamination of its pension accounting and financial reporting standards. Interested parties are encouraged to review and provide input on the ITC by July 31, 2009.

The ITC addresses key issues related to pension accounting and financial reporting that were raised during the research phase of this project. The topics considered in the ITC include the process on which pension accounting and financial reporting should focus; recognition of liabilities and expenses; measurement of unfunded pension obligations; the use of actuarial methods; and reporting by government employers in cost-sharing multiple-employer pension plans and reporting by pension plans themselves.

The input received in response to the ITC will help the Board determine whether modifications to current pension standards should be proposed in order to better meet the financial reporting objectives of accountability and decision usefulness, including enabling users of financial reports to assess the extent to which interperiod equity has been achieved.

“The GASB is committed to ensuring that its standards, including those associated with pension benefits, lead to information reported that is useful for making decisions, and assists users of financial reports to assess accountability,” said Robert H. Attmore, GASB chairman.

Written comments may be submitted through an Internet-based form or addressed to the Director of Research and Technical Activities, Project No. 34, and emailed to director@gasb.org or mailed to the GASB, 401 Merritt 7, PO Box 5116, Norwalk, CT 06856-5116.

A public hearing on the ITC is scheduled during the Board’s regular meeting on August 26, 2009, beginning at 8:30 a.m., at the GASB offices in Norwalk, CT. Interested individuals or organizations may participate in the public hearing in person or by telephone. The deadline for written notice of intent to participate in public hearing: July 31, 2009.