Under the Postemployment Benefits Accounting and Financial Reporting project, the GASB will assess the effectiveness of its existing standards for accounting and financial reporting for postemployment benefits-focusing on a review of existing pension standards in GASB Statements No. 25, Financial Reporting for Defined Benefit Pension Plans and Note Disclosures for Defined Contribution Plans, and No. 27, Accounting for Pensions by State and Local Governmental Employers -and consider whether improvements need to be made.
According to a press release, through the Public/Private Partnerships project, also added to the agenda, the Board will explore whether existing authoritative guidance is sufficient to address the accounting and financial reporting issues resulting from public/private partnership arrangements-such as contracting with private companies to operate or build toll roads or other major infrastructure assets-or if new standards are needed.
Also added to the agenda was a reexamination of GASB Statement No. 14, The Financial Reporting Entity, including consideration of establishing reporting standards for government departments, agencies, and other units smaller than a complete reporting entity. The additions were announced by GASB Chairman Robert Attmore following discussion among GASB members at the public Board meeting last week.
The Reporting Unit Presentations/Statement 14 Reexamination project has two main objectives. First, the GASB will consider developing generally accepted accounting principles (GAAP) for separately issued financial statements of reporting units that comprise less than a separate legal entity as defined in Statement 14. Second, the GASB will reexamine the requirements of Statement 14, as amended, to determine its effectiveness and to consider whether improvements are needed.
“While it is not common for three projects to be added to the current agenda at once, the GASB staff’s extensive research on these three major projects concluded at approximately the same time. The schedule also allowed the Governmental Accounting Standards Advisory Council to provide timely input on project priorities before this action was taken,” said GASB Chairman Robert Attmore, in a statement. “I am confident that these important projects will result in users of financial reports having access to better information, which will allow them to make better informed decisions about the entities they are evaluating.”
In addition, the GASB will be addressing three new practice issues:
- The AICPA Omnibus project will incorporate accounting and financial reporting standards currently found in the AICPA Statements on Auditing Standards into the GASB's literature, including the GAAP hierarchy.
- The ARC Adjustment project will consider providing guidance that would allow the annual required contribution (ARC) adjustment to be based on actual amounts associated with the amortization of past contribution deficiencies or excesses.
- The Derivative Instruments Implementation Guide project will provide assistance to practitioners in applying the forthcoming derivative instruments standard.
Research also will begin in two areas, according to the announcement:
- Identifying provisions in Financial Accounting Standards Board Statements and Interpretations, Accounting Principles Board Opinions, and Accounting Research Bulletins of the AICPA, issued on or before November 30, 1989, that do not conflict with or contradict GASB pronouncements, for possible codification into the GASB literature.
- Further development of the definition of fair value, the methods used to measure fair value, and potential disclosures about fair value measurements.
More information about the GASB and each of the projects mentioned above can be found at www.gasb.org .
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