Agenda - 01-22-2019 8-a - Minutes

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19 1 2 3 - Statement No. 90, Equity Interests an amendment of GASB 4 Statements No. 14 and No. 61, is intended to improve the consistency 5 and comparability of reporting a government's majority equity interest in a 6 legally separate organization and to improve the relevance of financial 7 statement information for certain component units. It defines a majority 8 equity interest and specifies that a majority equity interest in a legally 9 separate organization should be reported as an investment if a 10 government's holding of the equity interest meets the definition of an 11 investment. A majority equity interest that meets the definition of an 12 investment should be measured using the equity method, unless it is 13 held by a special-purpose government engaged only in fiduciary 14 activities, a fiduciary fund, or an endowment (including permanent and 15 term endowments) or permanent fund. Those governments and funds 16 should measure the majority equity interest at fair value. Applicable for 17 June 30, 2020. 18 19 21 ■ Other Matters Currently Being Considered by GASB 22 - Re-Examination of the Financial Reporting Model. GASB has added this 23 project to its technical agenda to make improvements to the existing financial 24 reporting model (established via GASB 34). Improvements are meant to 25 enhance the effectiveness of the model in providing information for decision- 26 making and assessing a government's accountability. 27 - Conceptual Framework is a constant matter being looked at by GASB. 28 Current measurement focus statements (for governmental funds) to change to 29 near-term financial resources measurement. May dictate a period (such as 30 60 days) for revenue and expenditure recognition. May expense things such as 31 supplies and prepaid assets at acquisition. 32 - Revenue and Expense Recognition is another long-term project where the 33 GASB is working to develop a comprehensive application model for recognition 34 of revenues and expenses from non-exchange, exchange, and exchange-like 35 transactions. 36 - Conduit Debt. The GASB is looking at improving the definition of conduit debt 3M77 and determining whether a liability should be reported for these transactions. 40 Other Changes 41 - There continues to be changes to auditing standards relative to the conduct 42 and reporting of Single Audits. This year's financial and compliance audit 43 recognized the implementation of the new Uniform Grant Guidance (UG), which 44 included significant changes to cost principles and other requirements for 45 auditees receiving Federal funds. These changes are driven based on the 46 grant award date as awarded by the Federal agency. As such, auditors and 47 auditees will follow requirements from both the "old" and "new" guidance for a 48 few years to come. 49