Wiley GAAP for Governments 2016: Interpretation and Application of Generally Accepted Accounting Principles for State and Local Governments

Warren Ruppel

• Publisher: Wiley
• Year: 2016
• ISBN:
  9781119107583
• Edition: 1
• Topic: Study Aids
• Subtopic: CPA (Certified Public Accountant) Study Guides

The essential reference for governmental GAAP application

Wiley GAAP for Governments 2016 provides the latest information on GAAP, with coverage designed specifically for government entities. With a focus on the practical rather than the academic, this book provides insightful, up to date implementation information and explanations of the important developments in governmental GAAP that have occurred in the past year. Exclusive coverage includes school districts, public authorities, and individual pension plans financial statements, with a disclosure checklist that helps preparers ensure compliance. Visual aids help facilitate the reader's understanding of the material, providing a comprehensive guide to financial reporting for governments at the state and local level. This reliable guide is an industry favourite for its accessibility, completeness, and relevance, helping readers achieve and maintain compliance with minimal burden.

Governmental accounting standards are continuously being released, growing in complexity with each iteration. Wiley GAAP for Governments is updated annually to provide the most up-to-date information available, with thorough explanations and expert implementation advice.

• Get up to speed on the newest accounting pronouncements
• Understand how GAAP applies to government bodies and pension plans
• Refer to disclosure checklists designed specifically for government entities
• Study flowcharts, diagrams, and charts to gain a deeper understanding

This user-friendly guide is organized for easy navigation, and designed to help preparers quickly find, understand, and apply the information they need. Expert guidance through the increasing complexity of preparation and implementation of relevant changes is what makes Wiley GAAP for Governments 2016 the reference financial professionals keep on their desks rather than on their bookshelves.

1
New Developments

1. Introduction
2. Recently Issued GASB Statements and their Effective Dates
3. Exposure Drafts
   1. Exposure Draft—Implementation Guide No. 20XX-1
   2. Effective Date
   3. Exposure Draft—Accounting and Financial Reporting for Irrevocable Split-Interest Agreements
   4. Exposure Draft—Blending Requirements for Certain Component Units—An Amendment of GASB Statement No. 14
   5. Exposure Draft—Accounting and Financial Reporting for Certain External Investment Pools
4. Preliminary Views
   1. Preliminary Views—Leases
      1. Definition of a Lease
      2. Lease Term
      3. Lessee Accounting
      4. Lessor Accounting
      5. Short-Term Lease Exception
      6. Lease Terminations and Modifications
      7. Subleases and Leaseback Transactions
      8. Leases with Related Parties and Intra-Entity Leases
   2. Preliminary Views—Financial Reporting for Fiduciary Responsibilities
      1. Gasb Project Plan
      2. Summary

Introduction

The 2016 Governmental GAAP Guide incorporates all of the pronouncements issued by the Governmental Accounting Standards Board (GASB) through August 2015. This chapter is designed to keep the reader up to date on all pronouncements recently issued by the GASB and their effective dates, as well as to report on the Exposure Drafts, Preliminary Views, and Invitations to Comment for proposed new statements or interpretations that are currently outstanding. This chapter also includes relevant information on the GASB's Technical Agenda for the upcoming year to give readers information as to potential areas for future GASB requirements.

Recently Issued GASB Statements and their Effective Dates

	GASB Statement	Effective Date	Where in this book
68	Accounting and Financial Reporting for Pensions— An Amendment of GASB Statement No. 27	Periods beginning after June 15, 2014	Chapter 17
69	Government Combinations and Disposals of Government Operations	Periods beginning after December 15, 2013	Chapter 11
70	Accounting and Financial Reporting for Nonexchange Financial Guarantees	Periods beginning after June 15, 2013	Chapter 15
71	Pension Transition for Contributions Made Subsequent to the Measurement Date – An Amendment of GASB Statement No. 68	Periods beginning after June 15, 2014 – to be applied simultaneously with GASB 68	Chapter 17
72	Fair Value Measurement and Application	Periods beginning after June 15, 2015	Chapter 12
73	Accounting and Financial Reporting for Pensions and Related Assets That Are Not within the Scope of GASB Statement 68, and Amendments to Certain Provisions of GASB Statements 67 and 68	Fiscal years beginning after June 15, 2016 for pensions not within the scope of GASB 68 Fiscal years beginning after June 15, 2015 for asset reporting and GASB 67 and 68 Amendments	Chapter 17
74	Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans	Fiscal years beginning after June 15, 2016	Chapter 22
75	Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions	Fiscal years beginning after June 15, 2017	Chapter 17
76	The Hierarchy of Generally Accepted Accounting Principles for State and Local Governments	Periods beginning after June 15, 2015	Chapter 2
77	Tax Abatement Disclosures	Periods beginning after December 15, 2015	Chapter 9
	Concepts Statement No. 6 Measurement of Elements of Financial Statements	N/A –for use by GASB in setting future standards	Chapter 2

The GASB has a number of Exposure Drafts and Preliminary Views that it has issued which will affect future accounting and financial reporting requirements when final standards are developed. The following provides a brief synopsis of what is being covered by each Exposure Draft and Preliminary Views document. Readers should always be aware that the GASB often modifies proposal stage literature based upon its continuing deliberations and consideration of comments that it receives on each Exposure Draft and Preliminary Views Document.

Exposure Drafts

Exposure Draft—Implementation Guide No. 20XX-1

In December 2014 the GASB issued two Exposure Drafts related to the amendment of the GAAP hierarchy for governments. Under the first Exposure Draft, the GAAP hierarchy would be as follow:

The sources of authoritative GAAP are categorized in descending order of authority as follows:

1. Officially established accounting principles—Governmental Accounting Standards Board (GASB) Statements.
2. GASB Technical Bulletins; GASB Implementation Guides; and literature of the American Institute of Certified Public Accountants (AICPA) if specifically cleared by the GASB.

The GASB issued GASBS 76.The Hierarchy of Generally Accepted Accounting Principles for State and Local Governments which is effective for periods beginning after June 15, 2015.

This Exposure Draft related to the Implementation Guides is an updated, cumulative implementation guide which, given its higher level of authority in the GAAP hierarchy, had to go through the due process procedures.

Effective Date

The requirements of GASBS 76 are effective for periods beginning after June 15, 2015, with earlier application encouraged. When issued the Implementation Guide Exposure Draft is expected to have the same implementation date.

Exposure Draft—Accounting and Financial Reporting for Irrevocable Split-Interest Agreements

This Exposure Draft was issued in June 2015 to address the accounting and financial reporting for irrevocable split-interest agreements. The requirements are similar to those used by not-for-profit organizations for similar type agreements, except for the recognition of deferred inflows of resources. These accounting requirements will more likely affect governmental colleges and universities as well as governmental hospitals, which are the most common recipients of these types of contributions.

Split-interest agreements are a specific type of giving arrangement used by donors to provide resources to two or more beneficiaries, including governments. Split-interest agreements can be created through trusts or equivalent arrangements under which a donor transfers resources to an intermediary to hold and administer for the benefit of the government and at least one other beneficiary. Examples of these types of arrangements include charitable lead trusts, charitable remainder trusts, charitable annuity gifts, and life-interests in real estate.

The accounting requirements resulting f...