GASB impairment of capital assets, insurance recoveries standard to be reviewed

BY KEN TYSIAC

GASB’s standard regarding the impairment of capital assets and insurance recoveries will be the subject of a Financial Accounting Foundation (FAF) post-implementation review.

A FAF team will review GASB Statement No. 42, Accounting and Financial Reporting for Impairment of Capital Assets and for Insurance Recoveries, according to a FAF news release. The standard provides measurement guidance for capital asset impairments.

State and local governments are required by the standard to report impairments when they occur. Before GASB No. 42 was issued in 2003, some state and local governments reported impairments as part of the ongoing depreciation expense for the capital asset, or upon disposal of the asset. GASB No. 42 also provides uniform reporting guidance for insurance recoveries of state and local governments.

Stakeholders who would like to participate in surveys on the standard can register at the FAF website.

In August, FAF expects to publish its report of a recently completed post-implementation review of two GASB standards for risk financing and insurance-related activities, including public risk pools. That review explored GASB statements No. 10, Accounting and Financial Reporting for Risk Financing and Related Insurance Issues, and No. 30, Risk Financing Omnibus.

Ken Tysiac ( ktysiac@aicpa.org ) is a JofA senior editor.

SPONSORED REPORT

Time to prepare for overtime changes

As an employer, trusted business adviser, or HR professional, you will need to be aware of exemption guidance, record requirements, advice for clients, and typical problems in applying overtime pay.

QUIZ

News quiz: Good news on pay and benefits for accountants

CPAs can find much to like in recent reports, including news that their expertise and skills are in such demand that pay is expected to rise and that their employers value professional certifications.

CHECKLIST

Bolster your data defenses

As you weather the dog days of summer, it’s a good time to make sure your cybersecurity structure can stand up to the heat of external and internal threats. Here are six steps to help shore up your systems.