1. GASB Update Governmental Research Association July 24, 2019
Dean Michael Mead, Senior Research Manager
Coordinator, Governmental Accounting Standards Advisory Council
Mr. Mead.

3. Earlier application is encouraged
Statement No. 88, Debt Disclosures, including Direct Borrowings and Direct Placements
What?
Statement 88 establishes a definition of debt that should be included in notes, distinguishes direct borrowings and direct placements from other debt, and requires some new disclosures.
Why?
A review of existing standards related to disclosures of debt found that debt disclosures provide useful information, but that certain improvements could be made
When?
FYEs and later
Earlier application is encouraged

4. Earlier application is encouraged
Statement No. 87, Leases
What?
Eliminates the distinction between operating and capital leases. Most leases will appear on the face of the financial statements as an intangible right-to-use asset and a long-term liability.
Why?
All leases are financings of the right to use a capital asset. Their economic substance is the same as borrowing and should be reported accordingly.
When?
FYEs and later
Earlier application is encouraged

5. Statement No. 91, Conduit Debt Obligations
What?
Statement 91 clarifies the definition of conduit debt and highlights additional commitments by issuers to support the debt service payments of third-party borrowers
Why?
Improvements to existing standards were needed to eliminate diversity in practice
When?
FYEs and later
Earlier application is encouraged

6. Exposure Draft: Omnibus
What?
The Board has proposed amendments to existing standards covering multiple topics, including transfers of assets to pension plans
Why?
Omnibus projects are used to address issues in multiple pronouncements that, individually, would not justify a separate project
When?
Comment deadline is October 4, 2019

7. Exposure Draft: P3s, APAs, and SCAs
What?
The Board has proposed standards for public-private and public-public partnerships (P3s), availability payment arrangements (APAs), and service concession arrangements (SCAs)
Why?
GASB research found that some P3 transactions are outside the scope of Statement 60 and identified opportunities to improve Statement 60’s guidance for SCAs
When?
Comment deadline is September 13, 2019

8. 2020 Proposals: Disclosure Framework
What?
The Board will propose concepts that guide standards-setting decisions regarding the information that should be disclosed in notes, including the target user
Why?
The GASB reexamined existing note disclosure requirements and concluded that it was necessary to elaborate on the concept of “essential” as it relates to notes
When?
First quarter of 2020

9. 2020 Proposals: Financial Reporting Model
What?
The Board will make its final proposal on governmental fund financial statements, budgetary comparisons, and management’s discussion and analysis
Why?
A review of those standards found that they generally were effective, but that there were aspects that could be significantly improved
When?
Second quarter of 2020

10. Revenue and Expense Recognition
What?
The Board will issues its second proposal regarding how and when revenues and expenses should be reported in financial statements
Why?
Guidance for exchange transactions is limited; guidance for nonexchange transactions could be improved and clarified
When?
Second quarter of 2020

11. Thank you for your involvement!
Phyllis Resnick – Governmental Accounting Standards Advisory Council (GASAC)
Joe Adams – Note Disclosure Research Consultative Group
Eric Lupher – Revenue and Expense Recognition Task Force
Stephen Stuart – Financial Reporting Model Reexamination Task Force
Sarah Wetmore – Going Concern Disclosure Consultative Group
To everyone who has responded to a survey or participated in an interview or roundtable

12. Get involved or stay involved
Phyllis needs your input on matters being discussed by the GASAC – she is the sole member with a GRA-type perspective
Keep an eye out for opportunities to respond to surveys or participate in interviews or roundtables
Take a look at proposed standards that interest you (particularly the Financial Reporting Model and Revenue and Expense Recognition projects) and share your views with the Board – either by comment letter or participation in a user forum