GASB 11 delayed indefinitely.The Governmental Accounting Standards Board The Governmental Accounting Standards Board (GASB) is currently the source of generally accepted accounting principles (GAAP) used by State and Local governments in the United States of America. 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 GASB Governmental Accounting Standards Board issued Statement no. 17, Measurement Focus and Basis of Accounting--Governmental Fund Operating Statements operating statement See income statement. : 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 Operating Lease A lease contract that allows the use of an asset, but does not convey rights similar to ownership of the asset. Notes: An operating lease is not capitalized it is accounted for as a rental expense. 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 New York City: see New York, city. New York City City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S. . "Statement no. 17 was issued because GASB remains unable to agree on implementation methods to get to full accrual accounting Accrual Accounting An accounting method that measures the performance and position of a company by recognizing economic events regardless of when cash transactions happen. Notes: ," 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 A method of accounting that reflects expenses incurred and income earned for Income Tax purposes for any one year. Taxpayers who use the accrual method must include in their taxable income any money that they have the right to receive as payment for services, once it 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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