GASB Revisits the Financial Reporting Entity
April 26, 2010
The Governmental Accounting Standards Board (GASB) has issued an Exposure Draft (ED) of a proposed Statement, The Financial Reporting Entity, an amendment of GASB Statements No. 14 and No. 34. Provisions of the proposed Statement would be effective in fiscal year 2013 for the vast majority of colleges and universities. Written comments are due to the GASB by June 30, 2010.
The proposed Statement is intended to improve guidance for including, presenting, and disclosing information about component units and equity interest transactions of a financial reporting entity. Of greatest significance to public institutions is that the proposal:
- Would amend the criteria for "blending," or the reporting of component units as if they were part of the primary government. The proposal sets out new criteria requiring blending of component units if their debt is expected to be repaid entirely or almost entirely with the resources of the primary government.
- Provides additional reporting guidance for blending a component unit if the primary government is a business-type activity that uses a single-column presentation for financial reporting. Public institutions with blended component units would be required to present combining information in the notes to the financial statements.
NACUBO will be providing comments to the GASB and encourages public institutions to submit comments either directly to GASB or to NACUBO for inclusion our industry comment letter. NACUBO's staff resource is Sue Menditto, director, accounting policy.
Director, Accounting Policy
- NACUBO Presses IRS for Relief from 1098-T Penalties
- Tuition Discounts Are Driving Up the Cost of College Says New Report
- FASB Clarifies Earlier Decision and Receives Not-for-Profit Advisory Committee Input
- 2014 Intermediate Accounting and Reporting - Fall
October 13-14, 2014
- 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: FASB's Proposed NFP Reporting Changes
- ON-DEMAND: VIRTUAL: Student Financial Services Conference
- ON-DEMAND: VIRTUAL: Higher Education Accounting Forum
- ON-DEMAND: VIRTUAL: Global Operations Support and Compliance 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