GASB Statement 63 and GASB Statement 65

GASB Statement 63 and GASB Statement 65

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Just when you thought it was safe to go back into the water! Remember when I said (in an earlier blog posting) that GASB was a four-letter word?  Still is. So watch for changes in OpenRDA for GASB Statement 63 and GASB Statement 65.

GASB Statement 63 is already effective and pertains to Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Position.  There is no longer a Statement of Net Assets.  Now, it is called a Statement of Net Position.  Net Position is the residual of all elements presented in a statement of financial position (Assets plus Deferred Outflows of Resources minus Liabilities minus Deferred Inflows of Resources equals Net Position).

GASB Statement 65 is effective for fiscal years that begin after December 15, 2012 (e.g., that ended 12/31/2013 or that will end 06/30/2014). It pertains to Items Previously Recognized as Assets and Liabilities. Some items that were an Asset will be a Deferred Outflow.  Some items that were an Asset will be an Expense. Some items that were a Liability will be a Deferred Inflow (such as property taxes received in advance). What is the impact? No change in governmental fund basic revenue recognition; lack of availability will be considered deferred inflow; deferred revenue will be considered deferred inflow; modified accrual concepts are still applicable.

Please note that both of these statements are financial reporting changes that your auditor, using data and reports from OpenRDA, incorporates into the CAFR and will not necessarily involve any changes in actual OpenRDA processes (such as journal entries, receipts, or vouchers). Until the next statement . . .

Phyllis

phyllis.flowers@gmail.com

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