GASB Q & A
If an entity elects to use the measurement date of 6/30/14, would they use the contributions for 7/1/13-6/30/14 for comparisons?
If an entity uses the 6/30/14 measurement date on their 6/30/15 statements, they would compare the contributions for 7/1/13-6/30/14 when calculating the difference between actual contributions and the proportionate share of contributions using the allocation method.
If an entity elects to use the measurement date of 6/30/14, how would they report the contributions for 7/1/14-6/30/15?
The entity would report the contributions made subsequent to the measurement date or 7/1/14-6/30/15 as deferred outflows.
Do I have to implement GASB standard 68 if the amounts are immaterial to my organization?
GASB Statement 68 includes the standard language "The provisions of this Statement need not be applied to immaterial items". It would be good practice to include a note disclosure to identify that an employer was part of the system and has evaluated the effects of GASB Statement 68, but that due to immateriality would not be following the 68 requirements. The entity would be responsible for supporting and justifying to their auditors that these amounts are in fact immaterial and will be required to do their homework as to this. One of the other aspects that has to be considered by the entity is that we do not want entities jumping in and out of this standard. In other words, it may not be material this year but it may be next year or down the road.
Will the GASB 68 reporting requirement apply to an entity that is using OCBOA (Modified Cash) annual reports?
Page 17 of the AICPA OCBOA Guide includes the following as a common transaction or event that should not be recorded in financial statements prepared in accordance with a modified cash basis of accounting.
- Recording long-term notes, bonds, and other obligations, including net pension and other postemployment benefit (OPEB) obligations, when no cash outflows are involved.
However, it would be up to each Entity to consider possible modifications to cash basis financial statements.
GASB 67 & 68 Overview
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