Wiley GAAP for Governments 2013: Interpretation and Application of Generally Accepted Accounting Principles for State and Local Governments

CHAPTER 12

CASH AND INVESTMENTS—VALUATION AND DISCLOSURES

Introduction

Valuation of Investments

GASB Statement 52, Land and Other Real Estate Held as Investments by Endowments

Specific Application of the Requirements of GASBS 31

Interest-earning investment contracts

Money market investments

External investment pools

Financial Reporting Requirements

Internal Investment Pools

Assignments of Interest

Required Disclosures

Accounting and Financial Reporting Standards for External Investment Pools and Individual Investment Accounts

External investment pool financial reporting

Financial reporting by sponsoring governments

Individual Investment Accounts

Deposits and Investment Risk Disclosures

Level of Detail

Deposit and Investment Policies

Custodial Credit Risk

Securities Lending Transaction Disclosures

Concentration of Credit Risk

Interest Rate Risk

Foreign Currency Risk

Other Requirements

Nature of Securities Lending Transactions

Previous Accounting Treatment

GASBS 28’s Effect on the Balance Sheet

GASBS 28’s Effect on the Operating Statement

Pooled Securities

Disclosure Requirements

Summary

INTRODUCTION

This chapter describes the accounting and financial reporting guidance for cash and investments held by governmental entities. Two significant GASB statements affect the accounting and financial reporting requirements for cash and investments.

• GASB Statement 40, Deposit and Investment Risk Disclosures—An Amendment of GASB Statement No. 3, revised the required disclosures regarding risks ...