Governmental Accounting and Auditing Update

Chapter 1GASB Activities

Learning objectives

• Identify recently issued and newly effective accounting standards affecting state and local governments.
• Recognize potential issues and challenges in implementing recently issued and newly effective accounting standards applicable to state and local governments.

Recent GASB standards

The following GASB statements issued before January 2020 are summarized in this chapter:

• Effective for reporting periods beginning after December 15, 2018
  • GASB Statement No. 84, Fiduciary Activities
  • GASB Statement No. 90, Majority Equity Interests—an amendment of GASB Statements No. 14 and No. 61
• Effective for reporting periods beginning after December 15, 2019
  • GASB Statement No. 87, Leases
  • GASB Statement No. 89, Accounting for Interest Cost Incurred before the End of a Construction Period
• Effective for reporting periods beginning after December 15, 2020
  • GASB Statement No. 91, Conduit Debt Obligations

In addition to the specific standards indicated here, Appendix A to this chapter discusses other GASB projects and their status.

Knowledge check

1. GASB Statement No. 84, Fiduciary Activities, is effective for which reporting periods?
   1. Beginning after June 15, 2017.
   2. Beginning after December 15, 2016.
   3. Beginning after June 15, 2018.
   4. Beginning after December 15, 2018.

GASB Statement No. 84

Why was this statement issued?

In January 2017, GASB issued GASB Statement No. 84, Fiduciary Activities, to enhance the consistency and comparability of ...