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Chapter 14

GASB Updates and Other Information

Overview

This section is made available for future updates, notes from workshops, further information and/or clarifications made to the GAAP conversion process.

To date, the following topics have been included in this section:

I.  New Accounting Pronouncements

GASB Statement No. 87, Leases, June 2017

Effective Date: For reporting periods beginning after December 15, 2019 (for CSU, effective for fiscal year ending 2021). Earlier application is encouraged.

Summary

The objective of this Statement is to better meet the information needs of financial statement users by improving accounting and financial reporting for leases by governments. This Statement increases the usefulness of governments' financial statements by requiring recognition of certain lease assets and liabilities for leases that previously were classified as operating leases and recognized as inflows of resources or outflows of resources based on the payment provisions of the contract. It establishes a single model for lease accounting based on the foundational principle that leases are financings of the right to use an underlying asset. Under this Statement, a lessee is required to recognize a lease liability and an intangible right-to-use lease asset, and a lessor is required to recognize a lease receivable and a deferred inflow of resources, thereby enhancing the relevance and consistency of information about governments' leasing activities..

How the Changes in This Statement Will Improve Financial Reporting

This statement will increase the usefulness of governments’ financial statements by requiring reporting of certain lease liabilities that currently are not reported. It will enhance the decision-usefulness of the information provided to financial statement users by requiring notes to financial statements related to the timing, significance, and purpose of a government's leasing arrangements.

II.  Access to Technical Accounting Literature and Resources

In preparing GAAP financial statements, it is essential that campus preparers have access to technical accounting literature and resources. Additionally, at a minimum, campus personnel should possess copies of GASB Statements Nos.34, 35, 37, and 38. It is also strongly recommended to have copies or access to other GASB Statements.

Campus personnel should utilize these resources to provide guidance on accounting and reporting in accordance with GAAP. These resources can be found on the GASB website at http://www.gasb.org/pub/index.html.

Revision Control

Document Title: Chapter 14 – GASB Updates and Other Information

Revision and Approval History

Section(s) Revised / Summary of Revisions / Revision Date
General / This chapter is revised annually. Refer to previous GAAP manuals for GASB updates from prior years.
14.00-1 / GAAP Manual | GASB Updates and Other Information | June 30, 2018