Standards 2021

Due to delays stemming from the Covid-19 pandemic, the Governmental Accounting Standards Board (GASB) postponed the effective dates of certain provisions in Statements and Implementation Guides that first became effective or were scheduled to become effective for periods beginning after June 15, 2018, and later. This means the new rules that were issued in 2018-2019 were extended, moving the effective dates into 2021 and 2022. Below you will find information on upcoming standards.

Standards Effective in 2020

Fiduciary Activities

GASB Statement 84

Issued to improve guidance regarding the identification of fiduciary activities for accounting and financial reporting purposes and how these activities should be reported.

The requirements of GASB Statement No. 84 are effective for the reporting periods beginning after December 15, 2020.

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Majority Equity Interest

GASB Statement 90: An Amendment of GASB Statements No. 14 and No. 61

Issued to improve the consistency and comparability of reporting a government’s majority interest in a legally separate organization and to improve the relevance of financial statement information for certain component units.

The requirements of GASB Statement No. 90 are effective for the reporting periods beginning after December 15, 2020.

Standards Effective in 2021

Leases

GASB Statement 87

Issued to improve the consistency of accounting and financial reporting for leases by governments by requiring recognition of certain lease assets and liabilities for leases that previously were classified as operating leases and recognized as inflows of resources or outflows of resources based on the payment provisions of the contract.

The requirements of GASB Statement No. 87 are effective for reporting periods beginning after December 15, 2021.

Accounting for Interest Cost Incurred before the End of a Construction Period

GASB Statement 89

Issued to enhance the relevance and comparability of information about capital assets and the costs of borrowing for a period and to simplify accounting for interest cost incurred before the end of a construction period.

The requirements of GASB Statement No.89 are effective for reporting periods beginning after December 15, 2021.

Conduit Debt Obligations

GASB Statement 91

Issued to provide a single method of reporting conduit debt obligations by issuers and eliminate diversity in practice associated with (1) commitments extended by issuers, (2) arrangements associated with conduit debt obligations, and (3) related note disclosure.

The requirements of GASB Statement No. 91 are effective for reporting periods beginning after December 15, 2021.

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Omnibus 2020

GASB Statement 92

The various requirements of GASB Statement No. 92 are effective for the reporting periods beginning after June 15, 2021.

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Replacement of Interbank Offered Rate

GASB Statement 93

Issued as result of global reference rate reform, in which LIBOR is expected to cease to exist, prompting governments to amend or replace financial instruments for the purpose of replacing LIBOR with other reference rates, by either changing the reference rate or adding or changing fallback provisions related to the reference rate.

The requirements of GASB Statement No. 93 are effective for the reporting periods beginning after June 15, 2021.

Certain Component Unit Criteria, & Accounting & Financial Reporting for IRC §457 Deferred Compensation Plan

GASB Statement 97: An amendment of GASB Statements No. 14 & No. 84,
a supersession of GASB Statement No. 32

The requirements of GASB Statement No. 97 are effective for the reporting periods beginning after June 15, 2021.

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Standards Effective in 2022

Public Private Partnerships and Availability Payment Arrangements

GASB 94

Issued to improve financial reporting by establishing the definitions of Public Private Partnerships and Availability Payment arrangements and providing uniform guidance on accounting and financial reporting for transactions that meet those definitions.

The requirements of GASB Statement No. 94 are effective for the reporting periods beginning after June 15, 2022.

Subscription-Based Information Technology Arrangements

GASB 96

The requirements of GASB Statement No. 96 are effective for the reporting periods beginning after June 15, 2022.

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Many of these statements will affect our clients – if you have any questions or concerns about how they may affect your organization, please reach out to our assurance team.

Kirsten Robertson

A Senior Analyst on our assurance team, Kirsten maintains expertise to provide auditing services with a specialization in Avizo’s governmental and construction-based niches. She is one of the primary leads on our in-field audits and completes training for all members of the firm before they visit clients offices.

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