GASB Statement 54

GASB Statement 54

image courtesy of Simon Howden/FreeDigitalPhotos.net

GASB is a 4-letter word. Do you remember when GASB 34 was the latest statement? And, that now the number has reach 70 (or perhaps even higher as I write this)?

Today, I want to talk about GASB Statement No. 54.  This one was issued in February, 2009, and was phased in depending on when the organization’s fiscal year begins. It applies to governmental funds (not proprietary/enterprise funds). While it doesn’t affect the total amount reported as fund balance, it does change the categories used to describe the components of fund balance.  No more fund balance, unreserved or fund balance, reserved (for example). The five components of fund balance under GASB 54 are Nonspendable Fund Balance; Restricted Fund Balance; Committed Fund Balance; Assigned Fund Balance; and Unassigned Fund Balance. I certainly cannot explain this as well as GFOA and am recommending that you purchase The New Fund Balance by Stephen J. Gauthier (yes, it’s a blue book but it is really small). Perhaps, you already have it (it’s really handy).

If you haven’t implemented the new fund balance sheet codes in your OpenRDA software, I’m confident that your auditor has been “translating” the GASB 34 codes into GASB 54 codes for your CAFFR (since the phase-in period has ended). Even so, there are aspects of GASB 54 that you need to know before instead of after the fact.

Please let me know if you’re interested in updating OpenRDA with the GASB 54 codes.  By the way, today’s flowers are bluebells–for GFOA, of course!

Phyllis

pdflowers@openrda.com

2 thoughts on “GASB Statement 54”

  1. Phyllis

    I like your new format about emailing updated changes.

    On Fund Balaces we have on our balance sheet 762,763,765,770,771,81,820,821,830,840,850. Can we get rid of a few accounts having zeros as a balance?

    Thank
    Paul Sachar

    Reply
    • Thanks, Paul. You’ll be able to use some of the same codes (they’ll just have different description and reference type). And, yes, those that aren’t applicable (never used) can be deleted. I’ll touch base with you tomorrow.
      Phyllis

      Reply

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