GASB Issues Exposure Draft on Impairment of Capital Assets
February 13, 2003
The Governmental Accounting Standards Board (GASB) published the Exposure Draft “Accounting and Financial Reporting for Impairment of Capital Assets and for Insurance Recoveries” in December. The proposed standard calls for reporting the effects of capital impairments upon occurrence and providing consistency in accounting for insurance recoveries.
In regard to capital asset impairment, governments would be required to evaluate prominent events or changes in circumstances affecting such assets. Impaired capital assets no longer to be used would be reported at the lower of carrying value or fair value. Impairments must be considered permanent to qualify for a write-down, and such losses would be reported in accordance with the guidance of GASB Statements 34 and 35. Impairment losses not obvious from the face of the financial statements will need to be disclosed.
The Exposure Draft also addresses guidance for insurance recoveries. The recommended guidance applies to all recoveries, not just those associated with the impairment of capital assets. However, recoveries associated with events or changes in circumstances resulting in the impairment of capital assets would be netted with the impairment loss. Recoveries that are not apparent on the financial statements will need to be disclosed in the notes to the financial statements.
The Exposure Draft is available on the GASB Web site. NACUBO encourages members to submit comment letters to the GASB by the February 28 deadline. The NACUBO contact for questions or feedback is Sue Menditto, manager: accounting & finance programs, (202) 861-2542, email@example.com.
- NACUBO Expresses Concerns with ED Proposal to Expand Federal Financial Responsibility Rules
- IRS Proposes Modifications to 1098-T Reporting
- ED Policy to Require Annual Student Aid Compliance Audits Beginning FY17
- 2016 Planning and Budgeting Forum
September 19-20, 2016
- 2016 Big Opportunities for Small Institutions
September 20-21, 2016
- 2016 Tax Forum
September 25-27, 2016
- ON-DEMAND: The CBO's Role in Diversity and Inclusion on Campus
- ON-DEMAND: The Clery Act: Strategic Planning to Mitigate Institutional Risk
- ON-DEMAND: Title IX: Key Issues Surrounding Institutional Compliance
- ON-DEMAND: NACUBO Live! Higher Education Accounting Forum
- ON-DEMAND: Responsibility Center Management: Two Different Perspectives