SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) NOTE 1
Net Position Net position is divided into three categories: (1) Net investment in capital assets includes capital assets less accumulated depreciation and outstanding principal of the related debt; (2) Restricted net position reflects restrictions on assets imposed by parties outside the MDTA; and (3) Net position restricted for capital expenses includes Intercounty Connector restricted funds. Unrestricted net position is total net position of the MDTA less net investment in capital assets, and restricted net position. New Accounting Pronouncements In June 2022, GASB issued Statement No. 100, “Accounting Changes and Error Corrections.” The objective of this Statement is to enhance accounting and financial reporting requirements for accounting changes and error corrections to provide more understandable, reliable, relevant, consistent, and comparable information for making decisions or assessing accountability. The requirements of this Statement are effective for reporting periods beginning after June 15, 2023. Statement No. 100 did not have a material effect on the MDTA’s financial statements. In April 2024, GASB issued Statement No. 103, “Financial Reporting Model Improvements.” The objective of this Statement is to improve key components of the financial reporting model. The purposes of the improvements are to (a) enhance the effectiveness of the financial reporting model in providing information that is essential for decision making and assessing a government’s accountability and (b) address certain application issues identified through pre-agenda research conducted by the GASB. The requirements of this Statement are effective for reporting periods beginning after June 15, 2025, and all reporting periods thereafter. However, earlier application is encouraged. The MDTA implemented the standard as of June 30, 2024. More information is located in Note 12. Upcoming Accounting Pronouncements In June 2022, GASB issued Statement No. 101, “Compensated Absences.” The objective of this Statement is to better meet the information needs of financial statement users by updating the recognition and measurement guidance for compensated absences. That objective is achieved by aligning the recognition and measurement guidance under a unified model and by amending certain previously required disclosure. The requirements of this Statement are effective for reporting periods beginning after December 15, 2023. In December 2023, GASB issued Statement No. 102, “Certain Risk Disclosures.” This Statement requires a government to assess whether a concentration or constraint makes the primary government reporting unit or other reporting units that report a liability for revenue debt vulnerable to the risk of a substantial impact. Additionally, this Statement requires a government to assess whether an event or events associated with a concentration or constraint that could cause the substantial impact have occurred, have begun to occur, or are more likely than not to begin to occur within 12 months of the date the financial statements are issued. The requirements of this Statement are effective for the fiscal years beginning after June 15, 2024, and all reporting periods thereafter. Earlier application is encouraged. The MDTA has not completed the process of evaluating the impact that will result from adopting GASB Statement No. 101 and 102 and is therefore unable to disclose the impact of adopting this Statement on the MDTA’s financial position at this time. However, the MDTA does not believe adopting GASB Statement No. 101 and 102 will have a material impact on the financial statements.
Annual Comprehensive Financial Report For Fiscal Year Ended June 30, 2024 | 53
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