Nonprofit & Government Times Q1 2020

GOVERNMENT UPDATE

GASB Statements Effective for the Year Ended December 31, 2019 PHILIP MARCIANO, CPA SENIOR MANAGER, PROFESSIONAL STANDARDS GROUP

T he following is a list of Governmental Accounting Standards Board (GASB) Statements effective for the year ended December 31, 2019, that you should be aware of.

an obligating event, which may include placing the asset into operation (by constructing or acquiring), contamination of an asset or abandoning the asset before it is placed into service. The value of the liability is based on the government’s best estimate of costs when incurred. Annual adjustments are required for inflation or deflation. This statement is effective for reporting periods beginning after June 15, 2018. GASB STATEMENT NO. 84—FIDUCIARY ACTIVITIES This statement establishes criteria for identifying fiduciary activities of all state and local governments. The criteria consider whether the government is controlling assets of fiduciary activities and who benefits from those assets. The statement also includes criteria for determining fiduciary component units and post- employment benefit activities that are fiduciary activities,

GASB STATEMENT NO. 83—CERTAIN ASSET RETIREMENT OBLIGATIONS

Asset retirement obligations is a legally enforceable liability associated with the retirement of a tangible capital asset. State and local governments must recognize the liability when it is both incurred and reasonably estimable. Upon retirement of tangible capital assets, a government may be required to perform certain actions by laws, regulations or other require- ments. The liability should be recognized at the time of

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