Spring 2011 issue of Horizons

Public Sector

GASB Statements Issued During 2010 By Ted Williamson, CPA and Kevin Bickel, CPA

GASB Statement No. 59 Financial Instruments Omnibus

The Governmental Accounting Standards Board (GASB) was active in late 2010, issuing four statements between June and December that will have wide-ranging effects on financial reporting for state and local governments as well as public colleges and universities. Three of the four statements modify existing ones in order to resolve shortcomings that have been identified since they were issued. The fourth statement introduces a new concept into the GASB literature: service concession arrangements, and the accounting rules that will govern such arrangements going forward. The statements, which are summarized in this article, will become effective for most entities during fiscal years 2011 through 2013:

GASB Statement No. 59 contains a variety of provisions that modify existing financial reporting requirements for certain financial instruments and external investment pools. The significant provisions are as follows: • Unallocated insurance contracts (i.e., insurance other post-employment benefit (OPEB) trust fund must now be reported at fair value in accordance with GASB Statement No. 31. Previously, pension and OPEB trust funds were permitted to report unallocated insurance contracts at their contract value. contracts not associated with a specific member’s benefits) held by a pension or

Raise Your Expectations

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