1 / 11

Technical Update Presented by Chris Ray Partner - KPMG LLP KPMG LLP

Technical Update Presented by Chris Ray Partner - KPMG LLP KPMG LLP. Effective Date Fiscal Year 2007 Fiscal Year 2008 Fiscal Year 2009. GASB Statement No. 43 Financial Reporting for Postemployment Benefit Plans and Other Than Pension Plans. Annual Revenues > $100 million

liana
Download Presentation

Technical Update Presented by Chris Ray Partner - KPMG LLP KPMG LLP

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Technical UpdatePresented by Chris RayPartner - KPMG LLPKPMG LLP

  2. Effective Date Fiscal Year 2007 Fiscal Year 2008 Fiscal Year 2009 GASB Statement No. 43Financial Reporting for Postemployment Benefit Plans and Other Than Pension Plans Annual Revenues • > $100 million • > $10 million and< $100 million • < $10 million

  3. GASB Statement No. 45Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than Pensions Effective: Fiscal Year 2008 • Establishes standards for the measurement, recognition, and display of other postemployment benefits (OPEB) expense/expenditures and related liabilities (assets), note disclosures, and, if applicable, required supplementary information (RSI) • Required to measure and disclose an amount for annual OPEB cost on the accrual basis of accounting

  4. GASB Statement No. 47Accounting for Termination BenefitsEffective: Fiscal Year 2006 / 2008 • Establishes accounting standards for termination benefits • Distinguishes between voluntary and involuntary termination benefits • Voluntary termination benefits: • Inducements to hasten the termination of services • For example, early retirement incentives • Involuntary termination benefits: • Benefits provided as a consequence of the early termination of services • For example, severance pay

  5. GASB Statement No. 47 - continued Recognition – Accrual Based Statements • Voluntary termination benefits: • Recognize liability and expense when the employees accept the offer and amounts can be estimated • Measurement of the liability should be updated, and any incremental liability should be recognized as of the end of each subsequent reporting period

  6. GASB Statement No. 47 - continued Recognition – Accrual Based Statements • Involuntary termination benefits: • Recognize liability and expense when: • Plan of termination has been approved by those with the authority to commit the employer to the plan • The plan has been communicated to the employees • Amounts can be estimated • Measurement of the liability should be updated, and any incremental liability should be recognized as of the end of each subsequent reporting period • If employee must render future service to receive termination benefit, recognize benefit over future service period

  7. GASB Statement No. 48Sales and Pledges of Receivables and Future Revenues and Intra-Entity Transfers of Assets and Future RevenuesEffective: Fiscal Year 2008 • Transaction is presumed to be a collateralized borrowing unless the specified criteria is met (¶ 6-9) • Provides guidance for transfers of assets or future revenues within the same reporting entity • Provides guidance on pledges of future revenues when resources are not received by the pledging government • Guidance provided on recording transactions for entities outside the government’s reporting entity and for entities that re part of the government’s reporting entity

  8. GASB Statement No. 49Accounting and Financial Reporting for Pollution Remediation ObligationsEffective: Fiscal Year 2009 • Statement 49 requires recognition of a pollution remediation obligation when one of five specified obligating events occurs • Obligations should be measured using the expected cash flow technique • Obligation may be measured and recognized in components • Certain outlays may be capitalized in accrual-based financial statements • Guidance is provided on accounting for expected recoveries

  9. Statement on Auditing Standards No. 112Communicating Internal Control Related Matters Identified in an AuditEffective: Fiscal Year 2007 • SAS No. 112 does not change the scope of a GAAS audit. The auditor is not required to design an audit to identify control deficiencies. Instead, we evaluate control deficiencies. SAS No. 112 is relevant when the auditor, in the performance of the audit, becomes AWARE of deficiencies. • Non GAAP Accounting Policies • Refer to Chapter 8, Section 8.9

  10. Other Projects • Statements expected to be issued in 2007: • Pension Disclosures • Intangible Assets (including computer software) • Elements Concept Statement • Land and Other Real Estate Held as Investments by Endowments • Statements expected to be issued in 2008: • Derivatives and Hedging • Fund Balance Reporting and Governmental Fund Definitions

  11. Questions?

More Related