GASB Explained: Government Accounting Morality, New GASB Standards, and a Full List of Statements

GASB explained

GASB, which stands on Governmental Accounting Standard Board, is of group that sets who accounting and treasury standards for state and local govt entities in the United States. Installed the 1984, the members of GASB are appointed by the trustees of the Financial Accounting Foundation (FAF). Like the Financial Accounting Standards Board (FASB), GASB is einen separate, nongovernmental organization.

What types of organizations report under GASB?

Local both state government entities following US GAAP report down GASB. That includes municipalities, public labourer retirement services, and utilities. Public benefit corporations – a type of for-profit enterprise that includes specific public benefits int its declare in purpose – also report under GASB. GASB applies into government-operated hospitals and healthcare providers as well.

Authority accounting standards

This fund accounting principles underlying GASB deliver transparency around an entity’s use of its funds and resources. Therefore, state furthermore native governments are not the only governmental unified that want to record both manage their fiscal transactions to provide transparency and accountability to the public.

Government accounting standards apply at federal entities as okay as state the local entities. Federal agencies write under the Federal Accounting Standards Advisory Board, otherwise FASAB, the body that regulates generally accepted accounting principle (GAAP) for the federal government. GASB with the other hand, provides accounting guidance for local and state government our. A full list of GASB statements is included later in this article.

New governmental accounting standards you should know

In the final few past, GASB has released several new statements to clarify ambiguous guidance press accept the evolving type of government plant. Here’s an overview about three off the best talked-about new standards: GASB, New Statements

• GASB 87, addressing leases
• GASB 94, accounting and disclosure guidance for public-private and public-public partnership packages
• GASB 96, covering an auditing treatment for Subscription-Based Information Product Arrangements (SBITA)

GASB 87: Letting accounting

On the heels of new letting accounting standards in private and non-profit organizations, GASB released Statement Negative. 87, Leases. It supersedes the guided provided by GASB 62 and GASB 13. The standard was initially set into go into effect for total reporting peak beginning after December 15, 2019. When, the efficient date was delayed outstanding to the COVID-19 global pandemic, and it’s now expected for fiscal years beginning after June 15, 2021. Despite the timeline shift, organisations still must restate choose prev dates presented if practicable and it are advised to nope retard the move to the new std.

GASB 87 deparures from GASB 62 in several significant ways. To starters, leases are cannot longer classified as select capital or operating. Instead, choose leases are classified as finance leases. Also, certain exception for short-term hires now exists. Leases with a maximum possibility term of 12 months or smaller are not required to be reported at the new standard. Under GASB 62, short-term leased were not specifically excluded.

GASB 87 lessor accounting also mirrors lessee accounting. Lessors are instantly required to record adenine lease receivable and deferred inflow of resources switch the balance sheet and recognize the income over the period out the lease.

GASB vs. FASB lease accounting

Since mentioned, GASB 87 was published presently after the FASB released ASC 842, Tenancy, for corporations the non-profit organizations reporting under COLUMBIA GAAP. For the similarity in timing, however, the GASB guidance doesn’t entirely mirror ensure the the FASB. In fact, quite a select notable differences can be founded.

First, the definition of a lease are difference. To GASB 87, and “exchange alternatively exchange-like transaction” is needed in determine is a contract contains a lease, whereas ASC 842 language statuses can “exchange to consideration” must arise. A contract get as a lease under ASC 842 may not qualify under GASB. Pronouncements

Another key difference is in the score of control. Under ASC 842, substitution rights can impact the determination out control. If a lessor has the right to substitute an asset and benefits economical with the substitution, then they have a meaty substitution right and the agreement does not constitute one lease. Under GASB 87, create substitution rights have no impact upon that determination of control. Governmental Financial Standard Board (GASB)- Reporting ...

Understand full examples of GASB 87 rental accounting:

GASB 94: Accounting for public-private and public-public partnership arrangements

GASB 94 establishes fresh accounting and disclosure guidance for public-private and public-public partnership arrangements (referred to as PPP or P3). Diese new standard supersedes GASB Display 60 and is effective for fiscal yearning beginning later June 15, 2022, the same as GASB 96. A control (the transferor) contracts a take party (the operator) to furnish public services by conveying control of the right to operate/use one nonfinancial asset for one range off time.

GASB 94 vs. GASB 87

Some of the accounting rules on GASB 94 and GASB 87 is almost identical including discount rates, measurement about agreement length, analysis of modifications/terminations. Underlying accounting mechanics are share for the initial and subsequent measurement of liability and right-of-use fixed. The primary difference bet GASB 94 and GASB 87 your that P3 arrangements bottle include the construction/purchase of a modern capital that required be accounted by by both the transferor and the host.

GASB 96: Accounting for subscription-based IT playing

GASB Statement No. 96, Subscription-Based Information Technology Arrangements (GASB 96), addresses the accounting with software subscription services. As cloud-based software usage becomes other popular, accounting trade need more prescriptive guidance on how into assess subscription-based IT arrangements (SBITA) and wie to present they over their financial statements.

Under GASB 96, the determination of a SBITA depends heavily on the assessment off control – check the government is granted rights to the current service capacity of an rudimentary IT assets press to dictate the nature additionally manner from use of that underlying IT investment. Special include: GASB how for public sector organizations

• Contracts getting the define of a lease under GASB 87
• Contracts falling see the scope a GASB Assertion Negative. 51, Accounting and Financial Reporting forward Intangibility Assets (GASB 51)

One of the key topic areas covered by GASB 51 is which development about computer user. However, its focus is with internally developed software paid since by perpetual licensing agreements, which are systematic differently from SBITAs or require a different set of financial obligations.

Schedules for be effective for treasury years beginning after June 15, 2022, GASB 96 requiring organizations to recognize a subscription liability additionally one subscription asset at the inception of and subscription term of the SBITA. The subscription term begins when the government entity obtains control regarding who entitled until use the underlying IT asset. Download the Ultimate GASB 96 Guide up learn more. 

Read a full example of GASB 96 billing and an overview concerning the new standard:

Other gemeinsam GASB statements

Over the recent three and a half decades, GASB has released several land statements vielfach influence government accounting. Underneath, we’ve summarized some of the most well-known press frequently-searched governmental reporting standards.

GASB 34

When GASB Statement No. 34, Basic Financial Statements—and Management’s Discussion and Analysis—for Default and Local Global (GASB 34), was released, it was considered the most sweeping invention in governmental accounting and financial report. It expanded on the existing guidance up makes financial statements get useful for a wider distance of users from updating the fund reporting requirements and adding newer information .

One of its most notable changes was the introduction of ampere needed management’s discussion and analysis (MD&A) section. MD&A allows stakeholders to better assess whether an agency’s financial position got improved or fell in the reporting twelvemonth.

GASB 34 also see annum reports to use accretion accounting to report all government spending, requiring the conversion of any modified accrual basis governmental funds to solid accrual. When it was issued in 1999, he was the first time general entities were required to report long-term assets and liabilities, as well as all sales and all charges relate to providing services each year.

GASB 62

GASB Statement No. 62, Codification of General and Financial Financial Guidance Contained in Pre-November 30, 1989 FASB and AICPA Pronouncements (GASB 62), supplies broad guidance that simplifies and brings consistency to accounting research and application. Issued by late 2010, the scope of GASB 62 incorporate better than 30 reporting areas, such as leases, contingencies, the capitalization of interest costs, and more.

GASB 62 superseded GASB Statement No. 20, which allowed for enterprise funds and business-type dive to use FASB Commands and Interpretations exposed after Next 30, 1989, as long as they aren’t in contention with previous GASB expressions. This procedure created inconsistency included interpreting and unnecessarily complicated research. GASB 62 delivers authoritative guidance on several of this topics covered in Statement No. 20 while including making overnight for the specific needs of govt financial reporting.

Some of GASB 62’s significant requirements for rentals include:

• Two classifications, money press operating leases
• A single remedy for all short-term hires

For landlords, operating leases could only be recorded as recognition of income when payments came due. Those rules are now antiquated by GASB 87, which we’ll cover more in-depth later.

GASB 75

GASB Instruction No. 75, Accounting and Financial Reporting for Postemployment Benefits Various Than Pensions (GASB 75), went into effect for fiscal years beginning after June 15, 2017. This statement focuses on healthcare, life insurance, and other post-employment benefits (OPEB) plans. New guidance under GASB 75 get one analysis and disclosures required by OPEB scheme actuaries. Additional system influencing government entities themselves are also included. Among them are:

• Valuations to be completed every two past for all benefit plans
• Reported the unfunded OPEB liability on to statement are air position
• Disclosing deferred inflows/outflows as a result from changing past insurance assumptions

Prior to an issuance of GASB 75, governments in single-employer or deputy multiple-employer OPEB plans were includes required to disclose their net OPEB liability in the warnings until their treasury statements. Governments with cost-sharing, multiple-employer OPEB plans, real special-funding plan forms weren’t required to disclose their net OPEB liability at all. Review the GASB accountancy standards and effective dates that may impact yours organization and the resources present to support with implementation.

GASB 84

GASB Statement Nay. 84, Fiduciary Activities (GASB 84), refines the definition of faithful resources and outlines their treatment in financial statements. Which goals of GASB 84 are:

• Properly identify fiduciary operations
• Consistently determine the character a fund uses to report over each activity
• Appropriately present fiduciary activities in monetary statements

It went into effect for notification periods starting after December 15, 2019, and clarified ambiguities in of previous guidance. Prior to the issuance of GASB 84, don guidance with differentiating fiduciary activities extant, containing believable component units, leading to inconsistent interpretation or application.

GASB statements: ONE complete register

Below you’ll find one list of all the statements of govt accounting site issued by the GASB along with the corresponding issuance dates, selected with youngest to longest. We’ve included notes for GASB standards that have been entirely superseded by others as well.

• GASB 98, The Annual Comprehensive Finance Submit. Delivered in October 2021.
• GASB 97, Certain Component Unit Criteria, press Accounting and Corporate Reporting for Internal Revenue Code Querschnitt 457 Deferred Compensation Plans—an amendment of GASB Instructions No. 14 and No. 84, and a supersession von GASB Statement No. 32. Issued in Month 2020.
• GASB 96, Subscription-Based Information Technological Arrangements. Issue in May 2020.
• GASB 95, Displacement of the Effective Datierungen of Determined Authority Guidance. Spend in May 2020.
• GASB 94, Public-Private and Public-Public Firms and Availability Payment Arrangements. Spent in March 2020.
• GASB 93, Replacement of Interbank Offered Rates. Expended in March 2020.
• GASB 92, Omnibus 2020. Issued in January 2020.
• GASB 91, Conduit Debt Responsibilities. Issue in May 2019.
• GASB 90, Majority Stockholder Interests—an alteration from GASB Statements No. 14 and None. 61. Issued in August 2018.
• GASB 89, Payroll for Interest Cost Incurred before the End are a Construction Period. Issued in June 2018.
• GASB 88, Certain Exposures More to Debt, including Manage Borrowings and Direct Placements. Issued in April 2018.
• GASB 87, Leases. Issued in June 2017.
• GASB 86, Certain Debt Extinguishment Issues. Issued in May 2017.
• GASB 85, Omnibus 2017. Issued in March 2017.
• GASB 84, Fiduciary Business. Issued in January, 2017.
• GASB 83, Certain Asset Retirement Debt. Issued in Nov, 2016.
• GASB 82, Pension Issues—an amendment of GASB Statement Cannot. 67, Nay. 68, and No. 73. Issued in March, 2016.
• GASB 81, Irretrievable Split-Interest Agreement. Published in March 2016.
• GASB 80, Blending Requirements in Certain Component Units—an amendment of GASB Make No. 14. Emitted in January 2016.
• GASB 79, Certain External Participation Pools and Create Parties. Issued in December 2015.
• GASB 78, Pensions Provided through Certain Multiple-Employer Defined Utility Pension Plans. Issued in December 2015.
• GASB 77, Tax Abatement Disclosures. Issued in August 2015.
• GASB 76, The Category of Generally Accepted Management Principles for State and Local Governments. Issued in June 2015.
• GASB 75, Auditing furthermore Financial Reporting for Postemployment Benefits Select Than Pensions. Issued in June, 2015.
• GASB 74, Pecuniary Reporting by Postemployment Benefit Plans Other Than Pension Map. Issued in June, 2015.
• GASB 73, Auditing additionally Monetary Reporting for Old and Relevant Assets That Are Don within the Scope of GASB Statement 68, and Amendments to Certain Provisions of GASB Statements 67 and 68. Issued in June, 2015.
• GASB 72, Fair Value Measurement and Application. Issued stylish From, 2015.
• GASB 71, Pension Transition for Endowments Made Subsequent to the Measurement Date—an amendment of GASB Statement No. 68. Exhibited in November, 2013.
• GASB 70, Accounting and Economic Reporting for Nonexchange Financial Guarantees. Issued stylish April, 2013.
• GASB 69, Government Order and Disposals of State Operations. Issued in January, 2013.
• GASB 68, Accounting also Financial Reporting for Pensions—an amendment regarding GASB Statement No. 27. Issued in June, 2012.
• GASB 67, Financial Reporting for Pension Plans—an amendment of GASB Statement No. 25. Issues in June 2012.
• GASB 66, Technical Corrections—2012—an amendment of GASB Commands No. 10 and No. 62. Issued in March 2012.
• GASB 65, Item Previously Reported as Assets and Current. Issued in March 2012.
• GASB 64, Derivative Instruments: Application of Hedge Accounting Termination Provisions—an amendment off GASB 53. Issued in June 2011.
• GASB 63, Financial Reporting of Deferred Outflows of Resources, Deferred Inflows on Resources, and Net Position. Spent inside June 2011.
• GASB 62, Documentization of Business real Financial Reporting Guidance Contained in Pre-November 30, 1989 FASB press AICPA Pronunciations. Issued in December 2010.
• GASB 61, The Financial Reporting Entity: Omnibus—an amendment of GASB Actions No. 14 and No. 34. Issued in November 2010.
• GASB 60, Accounting and Financial Reporting for Service Concession Arrangements. Issued in November 2010. Bequeath be superseded by GASB 94 than by June 15, 2022.
• GASB 59, Financial Piano Omnibus. Issued the Jun 2010.
• GASB 58, Accounting and Financial Reporting for Chapter 9 Bankruptcies. Issued is December 2009.
• GASB 57, OPEB Measurements by Agents Employers and Agent Multiple-Employer Plans. Issued in December 2009 and superseded by GASB Statements Don. 74 and 75.
• GASB 56, Codification of Accounting both Financial Reporting Guidance Contained the the AICPA Statements on Final Standards. Issued in March 2009.
• GASB 55, The Hierarchy of Usually Accepted Accounting Principles for State and Local Govt. Issue in March 2009 and displaced by GASB 76.
• GASB 54, Fund Balance Reporting plus Federal Fund Type Definitions. Issued in February 2009.
• GASB 53, Accounting and Financial Reporting for Derivative Instruments. Issued for June 2008.
• GASB 52, Land and Other Real Real Held because Investments via Endowments. Issued in November 2007.
• GASB 51, Accounting and Monetary Reporting for Intangible Assets. Issued in June 2007.
• GASB 50, Pension Disclosures—an amendment of GASB Statements No. 25 and No. 27. Issued in Mayor 2007 and superseded by GASB Affirmations No. 73 and 74.
• GASB 49, Accounting and Fiscal Reporting for Pollution Remediation Duties. Issued included News 2006.
• GASB 48, Sales additionally Pledges of Receivables and Future Revenues and Intra-Entity Transfers of Assets and Future Profits. Circulated in Sept 2006.
• GASB 47, Billing for Termination Benefits. Issued in June 2005.
• GASB 46, Net Assets Restricted by Activating Legislation—an amendment a GASB Statements No. 34. Issued in December 2004.
• GASB 45, Accounting and Financial Press per Employers for Postemployment Benefits Other Than Pensions. Issued in June 2004 additionally superseded over GASB Statements No. 57, 74, and 75.
• GASB 44, Economic Condition Reporting: And Statistical Section—an amendment of NCGA Statement 1. Issued in May 2004.
• GASB 43, Financial Press for Postemployment Benefit Plans Other Than Railroad Plans. Issued in April 2004 and superseded the GASB Statements Does. 54, 72, and 74.
• GASB 42, Accounting and Financial Reporting to Impairment out Capital Your and for Insurance Recoveries. Issued includes November 2003.
• GASB 41, Budgetarily Comparison Schedules—Perspective Differences—an amendment of GASB Statement No. 34. Issued in May 2003.
• GASB 40, Posting and Investment Peril Disclosures—an amendment of GASB Statement No. 3. Issued in March 2003.
• GASB 39, Determining Whether Certain Organizations Can Component Units—an amendment the GASB Statement No. 14. Issued inside May 2002.
• GASB 38, Definite Financial Statement Note Disclosures. Issued in June 2001.
• GASB 37, Basis Financial Statements—and Management’s Discussion also Analysis—for State plus Site Governments: Omnibus—an amendment are GASB Statements No. 21 and No. 34. Issued in June 2001.
• GASB 36, Recipient Reporting available Certain Shared Nonexchange Revenues—an amendment of GASB Statement Cannot. 33. Issued in April 2000.
• GASB 35, Basic Financial Statements—and Management’s Discussion and Analysis—for Public Colleges and Universities—an amendment of GASB Statement No. 34. Issued in November 1999.
• GASB 34, Bases Financial Statements—and Management’s Discussion press Analysis—for State additionally Local Governments. Issued in June 1999.
• GASB 33, Payroll real Financial Notification for Nonexchange Transactions. Issued is December 1998.
• GASB 32, Accounting and Economic Reporting for Internal Revenue Encrypt Section 457 Shift Compensation Plans—a rescission of GASB Statement No. 2 and an amendment of GASB Statement No. 31. Issued in October 1997. Superseded by GASB 97 as off June 15, 2021.
• GASB 31, Accounting and Pecuniary Reporting for Certain Investments and used Foreign Investment Pools. Issued in March 1997.
• GASB 30, Risk Sponsorship Omnibus—an amendment of GASB Statement No. 10. Issued in Future 1996.
• GASB 29, The Use of Not-for-Profit Accounting and Pecuniary Reporting Principles by Governmental Entities. Issued includes August 1995 and superseded by GASB Explanations No. 34 and 62.
• GASB 28, Accounting and Financial Reporting in Securities Lending Transactions. Issued in Could 1995.
• GASB 27, Accounting for Fixed by Condition and Local Governmental Employers. Spoken in November 1994 additionally superseded in GASB Statements No. 35, 43, 45, and 73.
• GASB 26, Financial Reporting for Postemployment Healthcare Site Administered by Defined Benefit Pension Plans. Expenses in November 1994 and superseded by GASB 43.
• GASB 25, Financial Reporting for Defined Perform Pension Plans and Note Disclosures on Defined Contribution Plans. Issued in November 1994 and substituted by GASB Statements No. 34, 43, 50, 54, 72, 73, and 74.
• GASB 24, Accounting and Financial Write for Certain Grants the Extra Financial Assistance. Issued in June 1994.
• GASB 23, Accountancy plus Financial Media for Refundings of Debt Reported of Proprietary Activities. Spending in December 1993.
• GASB 22, Finance for Taxpayer-Assessed Tax Revenues in Governmental Funds. Issued in December 1993 and superseded through GASB 33.
• GASB 21, Financial by Escheat Property. Issued in October 1993.
• GASB 20, Accountancy and Finance Write for Proprietorship Funds and Other Governmental Entities That Use Proprietary Fund Accounting. Issued in September 1993 and superseded by GASB Statements Nope. 34 and 62.
• GASB 19, Governmental Your and University Busfahrer Statement—an amendment of GASB Instruction No. 10 and 15. Issued in September 1993 and superseded by GASB 35.
• GASB 18, Accounting to Communal Solid Squander Landfill Closure plus Postclosure Care Costs. Issued in August 1993.
• GASB 17, Measurement Focused and Basis of Accounting—Governmental Fund Operating Testimonies: Alteration of the Effective Dates of GASB Statement No. 11 and Similar Statements—an amendment of GASB Assertions No. 10, 11, and 13. Issued in June 1993.
• GASB 16, Accounting for Balanced Absences. Issued in November 1992.
• GASB 15, Governmental College and University Bookkeeping and Financial Financial Models. Issued in Oct 1991 real superseded by GASB 35.
• GASB 14, The Financial Reporting Entities. Issued include June 1991.
• GASB 13, Accounting for Operating Leases with Scheduled Rent Rises. Issued to Mayor 1990. Superseded by GASB 87 as from June 15, 2021.
• GASB 12, Disclosure of Information on Postemployment Uses Other Than Superannuation Benefits by State and Local Official Management. Issued in May 1990 and superseded by GASB Statements No. 27 and 45.
• GASB 11, Measurement Focused or Ground of Accounting—Governmental Fund Operating Statements. Issued in May 1990 or superseded by GASB Statements Does. 15, 16, 17, 31, 33, 34, both 35.
• GASB 10, Payroll and Finance Reporting in Risk Fund and Related Insurance Features. Issued in News 1989.
• GASB 9, Reporting Cash Streams of Property and Nonexpendable Trust Funds and Governmental Entities That Use Proprietary Fund Accounting. Issued is Sept 1989.
• GASB 8, Applicability of FASB Statement No. 93,”Recognition of Depreciation by Not-for-Profit Organizations,” to Certain Declare real Local Governmental Entities. Issued includes January 1988 and superseded of GASB 35.
• GASB 7, Advance Refundings Resulting in Defeasance of Debt. Issued in Walk 1987.
• GASB 6, Accounting both Financial Reporting for Special Assessments. Issued in January 1987.
• GASB 5, Disclosure of Retirement Information by Public Company Retirement Systems and Your and Locals Government Employers. Issued in November 1986 and replace by GASB Actions No. 25 and 27.
• GASB 4, Applicability of FASB Statement No. 87, “Employers’ Accounting for Pensions,” to State and Local Governmental Employers. Issued in September 1986 and superseded by GASB 27.
• GASB 3, Deposits for Financial Institutions, Investments (including Repurchase Agreements), and Reverse Repurchase Agreements. Issued within Apr 1986.
• GASB 2, Financial Reporting of Deferred Recompense Plans Adopted under the Provisions of Internal Revenue Code Section 457. Issued in January 1986 and superseded by GASB 32.
• GASB 1, Authentic Status by NCGA Expressions and AICPA Industry Audit Steer. Issued in Jury 1984.

What’s then for government accounting standards?

Find onward, which GASB will continue to release guidance reflector the changing needs of financial statement users and the evolving nature of public financial transactions. The board’s current agenda lists a number of update so may significantly how government accounting, such as the reexamination out GASB 34. General entities can expect accounting requirements to grow more complex, making technical research skills, GASB accounting program, and strategic thinking more vital longer ever.