Accounting and Financial Reporting

GASB, New Statements

By Tim Jones

GASB continuously assesses accounting and financial reporting practices to identify improvements that help decision makers and users understand their state and local governments' financial condition better. The following list of pronouncements is effective for reporting periods beginning after December 15, 2020.

GASB 87 – Covers accounting and financial reporting for leases by governments. It establishes a single model for lease accounting based on the principle that leases are financings of the right to use an underlying asset.

Summary - Statement No. 87 (gasb.org)

GASB 89 – Covers the relevance and comparability of information about capital assets and the cost of borrowing and simplifies accounting for interest cost incurred before the end of a construction period.

Summary - Statement No. 89 (gasb.org)

GASB 91 – Provides a single method of reporting conduit debt obligations and eliminates a diversity in practices associated with commitments extended by issuers, arrangements associated with conduit debt obligations, and related note disclosures.

Summary - Statement No. 91 (gasb.org)

GASB 92 – Covers comparability in accounting and financial reporting by improving the consistency of authoritative literature by addressing practice issues that have been identified during implementation and application of certain GASB Statements.

Summary - Statement No. 92 (gasb.org)

GASB 93 – Addresses accounting and financial reporting implications that result from replacing financial instruments based on an interbank offered rate (IBOR) – most notably, the London Interbank Offered Rate (LIBOR) with other reference rates.

Summary - Statement No. 93 (gasb.org)

GASB 95 – Postpones by 12-18 months the effective date for certain provisions in Statements and Implementation Guides that first became effective for periods beginning after June 15, 2018 – notably each of the new pronouncements above.

Summary - Statement No. 95 (gasb.org)

Note – each government should determine the applicability of each pronouncement to its situation.