Update on GASB No. 54
By: Gardiner Thomsen CPAs | email
In March of 2009, the Governmental Accounting Standards Board (GASB) issued Statement No. 54, significantly changing the requirements for reporting governmental funds balances beginning in fiscal year ending June 30, 2011. The new statement clarifies the definitions of individual governmental funds and changes some of the activities reported in certain special revenue funds.
This overview of these requirements may seem well in advance of the implementation date, but we feel it is important to address this now. If entities apply the requirements of Statement 54 to their beginning balances for fiscal 2011, (more importantly, to their ending balances for fiscal 2010), implementation would only require tracking increases and decreases during the year to each category, rather than “backing into it” at the end of fiscal 2011. Governments will have to restate existing fund balances to conform to the new requirements. Officials need to be educated about the new classifications and disclosures, and it may be necessary for government officials to alert third parties about changes which could affect debt covenants or other requirements.
If you would like further information on GASB No. 54, including a complete list of the aforementioned governmental funds and their new definitions, please contact us.
