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18 <br /> <br /> <br />- GASB Statement No. 87, Leases was issued in June 2017 and is <br />effective for the first reporting period beginning after December 15, <br />2019. This statement increases the usefulness of governments’ financial <br />statements by requiring recognition of certain lease assets and liabilities <br />for leases that previously were classified as operating leases and <br />recognized as inflows of resources or outflows of resources based on the <br />payment provisions of the contract. It establishes a single model for <br />lease accounting based on the foundational principle that leases are <br />financings of the right to use an underlying asset. Under this statement, <br />a lessee is required to recognize a lease liability and an intangible right-to- <br />use lease asset, and a lessor is required to recognize a lease receivable <br />and a deferred inflow of resources, thereby enhancing the relevance and <br />consistency of information about governments’ leasing activities. <br />Applicable for June 30, 2021. <br /> <br />- Statement No. 88, Certain Disclosures Related to Debt, Including Direct <br />Borrowings and Direct Placements, under Statement 88, debt for <br />disclosure purposes is defined as a liability that arises from a contractual <br />obligation to pay cash (or other assets) in one or more payments to settle <br />an amount that is fixed at the date the contractual obligation is <br />established. Applicable for June 30, 2019. <br /> <br />- Statement 89, Accounting for Interest Cost Incurred Before the End of <br />a Construction Period, this standard eliminates the requirement/ability to <br />capitalize construction period interest costs as part of the cost of a capital <br />asset in enterprise funds. This standard should be applied prospectively <br />with no restatement. This standard can be early implemented as part of <br />fiscal year 2019, but is applicable for June 30, 2021. <br /> <br />- Statement No. 90, Equity Interests an amendment of GASB Statements <br />No. 14 and No. 61, is intended to improve the consistency and <br />comparability of reporting a government’s majority equity interest in a <br />legally separate organization and to improve the relevance of financial <br />statement information for certain component units. It defines a majority <br />equity interest and specifies that a majority equity interest in a legally <br />separate organization should be reported as an investment if a <br />government’s holding of the equity interest meets the definition of an <br />investment. A majority equity interest that meets the definition of an <br />investment should be measured using the equity method, unless it is <br />held by a special-purpose government engaged only in fiduciary <br />activities, a fiduciary fund, or an endowment (including permanent and <br />term endowments) or permanent fund. Those governments and funds <br />should measure the majority equity interest at fair value. Applicable for <br />June 30, 2020. <br /> <br /> Other Matters Currently Being Considered by GASB <br />- Re-Examination of the Financial Reporting Model. GASB has added this