GASB issues




New Definition for Property Tax Revenue

T he Governmental Accounting Standards Board issued a proposal that would make more consistent the accounting methods for nonexchange revenues, such as those from property taxes. The exposure draft, Property Tax Revenue Recognition in Governmental Funds , would be effective for periods beginning after June 15, 2000.

Revenues and expenditures of government funds are recognized using the modified accrual basis of accounting. The proposal would amend National Council on Governmental Accounting Interpretation no. 3, Revenue Recognition—Property Taxes , by modifying the term available to mean "collected within the current period or expected to be collected soon enough thereafter to be used to pay liabilities of the current period."

"The term available is defined differently for property taxes than it is for all other revenues," said Ken Schermann, GASB senior project manager. "The GASB believes a consistent definition should be applied to all types of nonexchange transactions."

Comments on the proposal are due by August 29. One copy of the ED is available from the GASB order department by calling 203-847-0700, ext. 555.

RESOURCES

Keeping you informed and prepared amid the coronavirus crisis

We’re gathering the latest news stories along with relevant columns, tips, podcasts, and videos on this page, along with curated items from our archives to help with uncertainty and disruption.

SPONSORED

Building process maps: Template and instructions

Documenting your financial close process and finding opportunities for automation are more important than ever. Our customizable slide deck has instructions, a risk assessment questionnaire, and bonus checklists that will help you map out your process.