FAF Reviews GASB Deposit and Investment Risk Standards
August 23, 2012
The Financial Accounting Foundation (FAF), the oversight body of the Governmental Accounting Standards Board (GASB), is conducting a post-implementation review (PIR) of GASB Statements 3 and 40. The PIR is part of an ongoing effort by FAF trustees to evaluate the effectiveness of accounting standards as well as the standard-setting process. The FAF welcomes feedback from preparers at public institutions concerning deposit and investment risk disclosure requirements.
The current phase of the PIR process involves a survey of GASB constituents. The survey, slated for September, will help the FAF evaluate the effectiveness of the accounting standards by hearing from users, preparers, auditors, academics, and regulators. NACUBO encourages public institutions to provide feedback to the FAF by registering and participating in this important survey.
A Brief Background
In 2003, the GASB issued Statement No. 40, "Deposit and Investment Risk Disclosures, an amendment of GASB Statement 3." In issuing the statement, the board had two objectives:
- Update the custodial credit risk disclosure requirements of GASB Statement No. 3, "Deposits with Financial Institutions, Investments, and Reverse Repurchase Agreements."
- Establish more comprehensive disclosure requirements to address other common risks of the deposits and investments of state and local governments.
GASB Statement No. 40 substantially increased the disclosures required about certain risks (i.e., credit risk, concentration of credit risk, interest rate risk, and foreign currency risk) related to the deposits and investments held by public institutions. In fact, many public institutions devote pages of their financial statement notes to these disclosures. For this reason, it is important for public institutions to participate in this post-implementation review process. The survey period is scheduled to begin the second week of September and continue for approximately four weeks.
Director, Accounting Policy
- Lawmakers Introduce Bills to Simplify Student Aid
- CFPB Proposes Draft Template for Student Banking Options
- Data on Campus Law Enforcement Released
- 2015 Endowment and Debt Management Forum
February 4-6, 2015
- 2015 Unrelated Business Income Tax
February 25-27, 2015
- ON-DEMAND: How to Build, Develop, and Support a Compliance Program at Your Institution
- ON-DEMAND: Strategic Tuition Assessment and Tuition Restructuring
- ON-DEMAND: Are Shared Services Right for Your Organization – The KU Journey
- ON-DEMAND: VIRTUAL: 2014 Annual Meeting
- ON-DEMAND: VIRTUAL: Student Financial Services Conference
- ON-DEMAND: VIRTUAL: Higher Education Accounting Forum
- A Guide to College and University Budgeting: Foundations for Institutional Effectiveness, 4th ed. - by Larry Goldstein
- NACUBO's Guide to Unitizing Investment Pools - by Mary S. Wheeler
- Managing and Collecting Student Accounts and Loans - by David R. Glezerman and Dennis DeSantis