FAF launches post-implementation review of GASB 54, ‘Fund Balance Reporting’
[caption id="attachment_194869" align="alignright" width="322"] GASB Chair Dave Vaudt, FAF President and CEO Terry Polley, FASB Chair Russ Golden[/caption]
The Financial Accounting Foundation is launching a Post-Implementation Review (PIR) of GASB Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions.
The announcement was made concurrent with the FAF's completion of its PIR on GASB Statement No. 49, Accounting and Financial Reporting for Pollution Remediation Obligations.
As noted on the FAF's PIR webpage:
- The PIR process was initiated by the Financial Accounting Foundation’s (FAF) Board of Trustees as part of the FAF’s oversight responsibilities for its two standard-setting bodies—the Financial Accounting Standards Board (FASB) and the Governmental Accounting Standards Board (GASB).
- The PIR process is intended to assist the Trustees with their ongoing efforts to evaluate the effectiveness of the standard-setting process for both the FASB and the GASB.
Post-Implementation Review of GASB 49: Favorable
Overall, the FAF's PIR of GASB 49 was favorable. Following were among the chief findings identified by the FAF:
- GASB Statement No. 49 achieved its expected benefits by requiring the reporting of pollution remediation obligations in a manner that is more consistent, timely and complete, providing users of financial statements with decision-useful information about pollution remediation liabilities in their analyses, when such amounts are significant.
- For most governments, pollution remediation obligation amounts are not significant.
- The measurement of a pollution remediation liability requires judgment as with any other accounting estimate.
- Overall, implementation and ongoing application costs associated with Statement 49 were not significant and were consistent with the GASB’s expectations.
- The changes made to financial and operating practices as a result of Statement 49 are not significant or unexpected.
- There were no significant unanticipated consequences as a result of the adoption of Statement 49.
"No standard-setting process recommendations resulted from our research," the FAF concluded, as to its finding from GASB 49.
How to participate in GASB 54 Post-Implementation Review
GASB constituents - including preparers of financial reporting who work for governmental organizations, auditors of those entities, users of governmental financial statements and other interested parties can register to provide feedback to the FAF as part of its PIR of GASB 54.
Noting the value of the PIR process, GASB Chair Dave Vaudt stated in his official response letter to the FAF's latest PIR:
- The Board recognizes that post-implementation reviews are an important feedback mechanism that provide insights into the effectiveness of our standards and opportunities to improve the standard-setting process.
- On behalf of the GASB, I would like to thank the Foundation for undertaking this important process and all the individuals and organizations who gave their time to share their insights and experiences with the PIR staff.
Maryland State Treasurer Co-Chairs Key FAF Committee
Learn more about the role of the Standard Setting Process Oversight Committee of the FAF, co-chaired by FAF Trustees Nancy K. Kopp, Maryland State Treasurer, and Dr. Terry D. Warfield, PwC Professor in Accounting and chair of the Department of Accounting and Information Systems at the University of Wisconsin, Madison. This committee of the FAF oversees the PIRs and the integrity of the FASB and GASB's standard-setting processes.
All PIRs planned for the FASB at this time have been completed. See the list of current PIR projects and completed PIR projects.
If you are a government contractor or deal with government contractors, the MACPA's 2016 Government Contractors conference is set to take place on September 19 in College Park, MD. A simulcast option is also available.
Fall Town Hall - Professional Issues Update Season Kicks Off
Network with your peers and get up to speed on critical developments impacting audit, business and industry by attending one of the MACPA's Fall 2016 Town Hall - Professional Issues Updates, hosted by MACPA CEO Tom Hood. The first one of the season kicks off with the September 16 Town Hall-Professional Issues Update