Government Accounting


GASB issued Statement no. 49, Pollution Remediation Obligations, to provide more consistency in how governments report the impact of current and prospective environmental cleanup costs. The statement (see Official Releases, page 81) identifies events that trigger recognition of expenses and liabilities, which would be estimated by expected cash flows, the first time the measurement technique will be employed by governments, GASB said. The statement will be effective for financial reporting periods beginning after June 15, 2007.

The Financial Systems Integration Office and the Office of Management and Budget (OMB) released an exposure draft of a Common Government-wide Accounting Classification Structure (CGAC) for use by all federal agencies. Facilitated sessions to discuss comments are scheduled for February, before the final structure is adopted.

The CGAC—part of the federal government’s effort to standardize the development and implementation of its financial management systems—is designed to reduce the cost and improve the quality of agency financial systems by establishing a standard way to classify the financial effects of government business activities. Federal agencies are expected to adopt the finalized structure when they implement new financial management systems, make major upgrades to an existing system or switch to a shared vendor. Eventually, the CGAC structure will be mandatory for all federal agencies. The ED and the results of an information survey on the topic are available at www.fsio.gov/fsio/fsiodata.

SPONSORED REPORT

How the election may affect taxation of business income

This report summarizes recent proposals to reform the U.S. business income tax system and considers the path to enactment of any such legislation.

VIDEO

How to Excel pivot a general ledger

The general ledger is a vast historical data archive of your company's financial activities, including revenue, expenses, adjustments, and account balances. J. Carlton Collins, CPA, shows how to prepare data for, and mine data with, PivotTables.

QUIZ

Did you follow 2016’s biggest accounting news?

CPAs will remember 2016 as a year of new standards and new faces. How well did you follow the biggest accounting events? The 7 questions in this quiz will help you find out