GASB Issues Technical Bulletin and Interpretation
The Governmental Accounting Standards Board published a new technical bulletin on deposits and investments for certain bank holding company transactions, as well as a new interpretation on recognizing property tax revenue.
Technical Bulletin (TB) no. 97-1, Classification of Deposits and Investments into Custodial Credit Risk Categories for Certain Bank Holding Company Transactions , clarifies certain provisions of GASB Statement no. 3, Deposits with Financial Institutions, Investments (including Repurchase Agreements), and Reverse Repurchase Agreements . It explains how, depending on certain sets of circumstances, deposits and investments with bank holding companies should be classified under the custodial risk categories in Statement no. 3. It is effective for years beginning after December 15, 1997.
A Defining Term
In Interpretation no. 5, Property Tax Revenue Recognition in Governmental Funds , the GASB clarifies the term available as it relates to recognizing property tax revenue under the modified accrual basis of accounting. The term now means collected within the current period or expected to be collected soon enough thereafter to be used to pay liabilities of the current period. This eliminates the due date criterion from the definition but does not change the 60-day collection deadline for due or past-due status. This interpretation will be effective for periods beginning after June 15, 2000. Early application is encouraged.
Copies of TB no. 97-1 (code no. GTB01; $6 each) and Interpretation no. 5 (code no. GI05; $8.50 each) are available from the GASB order department by calling 203-847-0700, ext. 555.