Update on AGA Hawaii Chapter Part II - Mr. Bean Project Update

1. Update AGA—Hawaii Chapter Part II Mr. Bean.

2. Project Update

3. Major and Practice Issue Projects

4. Exposure Draft, Public-Private and Public-Public Partnerships and Availability Payment Arrangements

5. PPP and APA—Definitions

6. SCA—Definition

7. Other Proposals

8. PPP: Transferors

9. PPP: Governmental Operators

10. Exposure Draft, Subscription-Based Information Technology Arrangements

11. SBITA—Definition A subscription-based information technology arrangement (SBITA) “is a contract that conveys control of the right to use another party’s (the vendor’s) hardware, software, or a combination of both, including IT infrastructure (the underlying hardware or software) as specified in the contract for a period of time in an exchange or exchange-like transaction.”

12. SBITA—Recognition and Measurement

13. SBITA—Stages

14. Big Three

15. What Are the Big Three? • Financial Reporting Model • Recognition Concepts • Revenue and Expense Recognition • Disclosure Framework • Disclosure Requirements

16. Financial Reporting Model—Reexamination of Statement 34

17. Background

18. Due Process—To Date

19. Stakeholder Feedback • Invitation to Comment • Written responses—111 • Five public hearings—48 individuals/organizations • Three user forums—30 participants • Preliminary Views • Written responses—150 (including 102 original responses) • Three public hearings—30 individuals/organizations • Two user forums—22 participants • Field test—67 participating governments

20. PV Versus AV

21. Major Issues • Recognition terms • Normally • Contractual • Recognition method • Due • Payable • Recognition period • One-year • Near-term (60 or 90 days)

22. Proposal: Presentation of Governmental Funds

23. Proposal: Presentation of Governmental Funds—New Terminology

24. Statement of Short-Term Financial Resource Flows Current and Noncurrent Activity Format

25. Operating Versus Nonoperating

26. Proposals: Proprietary Funds Separate presentation of operating and nonoperating revenues and expenses

27. Proposals: Proprietary Funds

29. Budgetary Comparisons

30. Proposal: Budgetary Comparisons

31. Management’s Discussion and Analysis (MD&A)

32. MD&A—Basic Proposals

33. MD&A—Currently Know Facts, Decisions, or Conditions

34. Other Issues—Tentative Decisions for Exposure Draft

35. Other Issues

36. Future Direction For This Project

37. Revenue and Expense Recognition

38. Revenue and Expense Recognition Models The are three components of a revenue and expense recognition model

39. Revenue and Expense Recognition Models The are three components of a revenue and expense recognition model

40. Revenue and Expense Recognition Models The are three components of a revenue and expense recognition model

41. To Exchange or Not to Exchange • Invitation to Comment • Exchange and nonexchange model • Performance obligation and nonperformance obligation model • To develop a model in which revenue and expense transactions would be organized into two categories: Category A and Category B (the AB Model).

42. The AB Model—Conceptual • Category A • An acquisition coupled with a sacrifice • Two-flows • Rights and obligations • Category B • Either an acquisition or a sacrifice • Single-flows • Either rights or obligations

43. The AB Model—Operational

44. Conceptual Framework—Disclosure Framework

45. Concepts Related to Disclosures

46. Topics Being Considered

47. Tentative Decisions

48. Questions Website information: www.gasb.org