Summary of Currently Applicable GASB Statements GASB 60 ...

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GASB 63 ‐ Financial Reporting for Deferred Outflows, Deferred Outflows and Net Position This Statement, which is effective for fiscal year 2013, establishes standards for reporting deferred inflows, outflows and net position consistent based on guidance provided in GASB Concept Statement No. 4: Deferred outflows‐consumption of Net Assets applicable to future reporting period Deferred inflow‐acquisition of Net Assets applicable to a future period Net Position‐residual of all other elements in financial statements which is presented as (Assets + deferred inflows ‐ liabilities ‐ deferred outflows) Summary Comments: This Statement effectively changes the presentation of the balance sheet for fiscal year ended June 30, 2013. The Statement of Net Assets will become the Statement of Net Position, with Deferred Outflows reported below assets but before liabilities and Deferred Inflows reported after liabilities but before Net Position. Currently, the reporting of deferred inflows and outflows only apply to transactions addressed in two GASB pronouncements, Statement 53 concerning derivatives and Statement 60 on concession arrangements. GASB 65, which will be discussed later, provides additional guidance on other transactions subject to this format. GASB 64‐Application of Hedge Accounting Termination Provisions This Statement was effective in fiscal year 2012. It clarifies existing requirements for the termination of hedge accounting first addressed in GASB 53. Summary Comments: This Statement should not affect USG institution’s reporting because our schools are not allowed to invest in derivative type instruments. It may have some effect on Foundation reporting and the schools would need to work with the foundation accountants and auditors to ensure proper reporting.
GASB 65‐Items Previously Reported as Liabilities This Statement, which is effective in fiscal year 2014, builds on the reporting requirements for deferred outflows and deferred inflows that were discussed in GASB Statement 63 above and GASB Concept Statement No. 4. This statement will require that certain items previously reported as assets or liabilities now be classified as deferred inflows or outflows. Key components of GASB Concept Statement 4 affecting classification of transactions: Assets are considered to be resources with present service capacity that the government presently controls. Liabilities are present obligations to sacrifice resources that the government has little or no discretion to avoid. Deferred outflows of resources are a consumption of assets applicable to a future period. Deferred inflows of resources are the acquisition of resources that are applicable to future periods. Items currently reported as assets that will continue to be reported as assets based on GASB 65 because they meet the present service capacity and governmental control and items currently reported as liabilities because they are present obligations that government has little or no ability to avoid are: Assets Prepayments Resources advanced to another government that are considered a Government mandated nonexchange transactions (normally grants where provider government requires lower level government to undertake some mandated action) or voluntary non‐exchange transactions (grants or donations which are the result of contractual agreements) where eligibility requirements, other than time requirements, have not been met. The purchase of future revenues from a government outside the financial reporting entity. Example would be sales of receivables. Initial subscriber costs for cable television systems. Capitalized costs related to regulated activities. Liabilities Derived Tax non‐exchange revenues (income tax, sales tax) received in advance. Resources received in advance for government mandated non‐exchange transaction or a voluntary non‐exchange transaction when eligibility requirements other than time requirements have not been met. Liability side of item 2 listed under assets. Resources received in advance of exchange transactions. Excess of initial hook up revenues over direct selling costs for cable television systems. Premium revenues for insurance entities and public entity risk pools. Commitment fees related to acquiring loans. Fees related to guaranteeing mortgages. Fees received for arranging a commitment between investor and borrower.
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Summary of Currently Applicable GASB Statements GASB 60 ...

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