GASB issues 3 exposure drafts

Proposals address fiduciary activities, asset retirement obligations, and pension issues.

GASB proposed new accounting and financial reporting guidance to improve consistency, comparability, and clarity in government accounting and reporting.

The proposals pertain to fiduciary activities, certain asset retirement obligations, and pension issues. They are contained in three separate exposure drafts—Fiduciary Activities, Certain Asset Retirement Obligations, and Pension Issues.

In Fiduciary Activities, GASB proposed guidance regarding the definition and reporting of fiduciary activities. Currently, governments must report fiduciary activities in fiduciary fund financial statements, but existing standards do not explicitly define the activity to be reported, according to GASB.

The Fiduciary Activities proposal also is meant to allow assessment of governments' fiduciary accountability. In addition, it provides guidance on the recognition of liabilities to beneficiaries. The proposal would apply to all state and local governments. GASB seeks comment by March 31.

Under the Certain Asset Retirement Obligations proposal, a government that is legally obligated to perform future asset retirement activities related to its tangible capital assets—such as the decommissioning of a nuclear reactor—would be required to recognize a liability and a corresponding deferred outflow of resources. The proposal also would require related disclosures. GASB seeks comment by March 31.

In Pension Issues, GASB addresses practice issues raised during the implementation of Statements No. 67, Financial Reporting for Pension Plans, and No. 68, Accounting and Financial Reporting for Pensions. The comment period closed Feb. 12.

The proposal addresses:

  • Presentation of payroll-related measures in required supplementary information.
  • Selection of assumptions and the treatment of deviations from the guidance in Actuarial Standards of Practice for financial reporting purposes.
  • Classification of payments made by employers to satisfy employee contribution requirements.

SPONSORED REPORT

2018 financial reporting survey: Challenges and trends

Learn the top reporting challenges that emerged in a survey of more than 800 finance, accounting, and compliance professionals across the world, and compare them with your organization's obstacles.

PODCAST

How the skill set for today’s CFO is changing

Scott Simmons, a search expert for large-company CFOs, gives advice for the next generation of finance leaders and more, including which universities are regularly producing future CEOs and CFOs.