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GASB 11 delayed indefinitely.

The Governmental Accounting Standards Board indefinitely delayed the effective date of its controversial Statement no. 11 on measurement focus and basis of accounting. The statement would have gone into effect for financial statements for periods beginning after June 15, 1994.

As a result of this decision, GASB issued Statement no. 17, Measurement Focus and Basis of Accounting--Governmental Fund Operating Statements: Amendment of the Effective Dates of GASB Statement no. 11 and Related Statements.

As its title implies, Statement no. 17 defers the effective date of Statement no. 11 to periods beginning approximately two years after an implementation standard is issued. It also modifies the reference in Statement no. 13, Accounting for Operating Leases with Scheduled Rent Increases, to Statement no. 1 I's effective date.

If implemented, Statement no. 11 will require governments to shift more fully to the accrual method of accounting. GASB has been trying to achieve this goal since its inception over 10 years ago, said Philip Calder, a partner of Ernst & Young, New York City.

"Statement no. 17 was issued because GASB remains unable to agree on implementation methods to get to full accrual accounting," Calder said. "It was among the first topics GASB considered after its inception and has been under study ever since. It is a frustration to GASB and those who deal with GASB that the board is unable to reach a consensus on the means for implementing full accrual accounting in government."

Statement no. 17 also establishes, independent of the effective date of Statement no. 11, an effective date for Statement no. 10, Accounting and Financial Reporting for Risk Financing and Related Insurance Issues. Statement no. 10 concerns entities other than pools that use the modified accrual basis of accounting in government and similar trust funds.

For information on prices and discount rates for Statement no. 17, contact the GASB order department at (203) 847-0700, ext. 10.
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Title Annotation:on measurement focus and basis of accounting
Publication:Journal of Accountancy
Article Type:Brief Article
Date:Sep 1, 1993
Words:314
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