FASAB addresses intragovernmental exchanges, component reporting

By Ken Tysiac

The Federal Accounting Standards Advisory Board (FASAB) issued technical bulletins Wednesday related to accounting for intragovernmental exchange transactions and assigning assets to component reporting entities.

In Technical Bulletin 2017-1, Intragovernmental Exchange Transactions, FASAB provides guidance to help federal reporting entities determine whether intragovernmental arrangements are exchange transactions. The bulletin addresses whether value has been sacrificed and received by the parties to a transaction.

“TB 2017-1 will help agencies identify intragovernmental exchange transactions in a reasonably consistent manner and improve the reporting of revenue and cost information by ensuring that transactions are appropriately classified,” Wendy Payne, FASAB’s executive director, said in a news release.

Technical Bulletin 2017-2, Assigning Assets to Component Reporting Entities, clarifies which component entity should report an asset. According to the bulletin, assets may be assigned by a reporting entity to its component reporting entities on a rational and consistent basis.

“TB 2017-2 will help large and complex organizations align reporting with their operations,” Payne said. “It also fills a void that existed in current standards.”

Ken Tysiac (Kenneth.Tysiac@aicpa-cima.com) is a JofA editorial director.

SPONSORED REPORT

Implementing a global statutory reporting maturity model

Assess your organization's capabilities and progress toward an ideal state of global statutory reporting. Sponsored by Workiva.

100th ANNIVERSARY

Black CPA Centennial, 1921–2021

With 2021 marking the 100th anniversary of the first Black licensed CPA in the United States, a yearlong campaign kicked off to recognize the nation’s Black CPAs and encourage greater progress in diversity, inclusion, and equity in the CPA profession.