GASB Addresses Bankruptcy
July 30, 2009
The Governmental Accounting Standards Board (GASB) has proposed a new standard to assist governments with issues relevant in today's economic environment. The exposure draft, "Accounting and Financial Reporting for Chapter 9 Bankruptcies," would provide guidance for governments that have petitioned for protection from creditors by filing for bankruptcy under Chapter 9 of the United States Bankruptcy Code. Comments on the proposal are due to GASB by August 28, 2009.
GASB currently has no authoritative literature for governments filing bankruptcy. Although it is rare for governmental entities to file bankruptcy, such a circumstance would require the government to look to standards that may take an approach to recognition and measurement that is not consistent with governmental accounting and reporting.
The proposal would require governments to remeasure liabilities that are subject to adjustment in bankruptcy. The measurement would consider the new payment plans that result from the bankruptcy proceedings. The proposal also notes that existing authoritative guidance should be followed when remeasuring leases, pollution remediation liabilities, and liabilities for pension and other postemployment benefit plans.
Director, Accounting Policy
- Tuition Increases Slow, While Student Loan Borrowing Declines, College Board Reports
- IRS Response to NACUBO on 1098-T Penalties Offers No Relief
- IRS Publishes Final Rules on Overpayments of Arbitrage Rebate on Tax-Exempt Bonds
- 2015 Intermediate Accounting and Reporting - Winter
January 22-23, 2015
- 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