Cumulative_Update_Bulletin_15e - Cumulative Update Bulletin...

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Cumulative Update Bulletin September 2008 through August 2011 Accounting for Governmental and Nonprofit Entities, 15e Wilson, Reck, and Kattelus This cumulative update bulletin updates our text for all developments and technical changes in GAAP that have occurred since the cut-off date for inclusion in the 15 th edition of the text, August 2008. As such, this bulletin further updates the Cumulative Update Bulletin released in fall 2010 for changes that have occurred over the past year. In addition, the update bulletin provides tips and information that may be useful to those currently using our text. State and Local Governmental Accounting & Financial Reporting (Chs. 1-10) Since the cutoff date for the 15 th edition of the text, the GASB has issued Statement Nos. 54 through 64 , Concepts Statement No. 5 , a technical bulletin, and several exposure drafts of proposed statements. Of these pronouncements, only GASBS 54 , “Fund Balance Reporting and Governmental Fund Type, GASBS 61 “The Financial Reporting Entity: Omnibus—an amendment of GASB Statements No. 14 and No. 34, ” and GASBS 63 , “Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Position” significantly affect the text. Because these three pronouncements do significantly impact coverage in the text, instructors should thoroughly familiarize themselves with these statements. To assist in this regard, a discussion is provided below for the effects of GASBS 54 , GASBS 61 , and GASBS 63 , as well as a short synopsis for the other pronouncements: GASBS 64 “Derivative Instruments: Application of Hedge Accounting Termination Provisions” (June 2011). This statement clarifies for swap agreements that a hedge relationship continues to exist if a swap counterparty or counterparty credit support provider is replaced. Accordingly, hedge accounting should continue to be applied rather than terminating the hedge and hedge accounting. This guidance became necessary when questions were raised regarding the applicability of termination provisions for interest rate and commodity swap agreements under GASBS 53 , “Accounting and Financial Reporting for Derivative Instruments.” GASBS 63 “Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Position” (June 2011). This statement provides citizens and other users of state and local government financial reports with improved information about how past transactions will impact a government’s financial statements in the future. It does so by providing a new statement of net position format to report all assets, deferred outflows of 1
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resources, liabilities, deferred inflows of resources, and net position (which is the net residual amount of the other elements; specifically, net position is the difference between (1) assets and deferred outflows of resources and (2) liabilities and deferred inflows of resources. The statement requires that deferred outflows of resources and deferred inflows of resources be
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This note was uploaded on 03/28/2012 for the course ACIS 4124 taught by Professor Dr.easterwood during the Spring '12 term at Virginia Tech.

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Cumulative_Update_Bulletin_15e - Cumulative Update Bulletin...

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