GASB issues statement on sales and collateralized borrowing.

The Governmental Accounting Standards Board has issued Statement No. 48, Sales and Pledges of Receivables and Future Revenues and Intra-Entity Transfers of Assets and Future Revenues. This statement establishes criteria that governments will use to ascertain whether certain transactions should be regarded as a sale or a collateralized borrowing. Such transactions are likely to comprise the sale of delinquent taxes, certain mortgages, student loans, or future revenues such as those arising from tobacco settlement agreements. The statement's requirements are effective for financial statements for periods beginning after Dec. 15, 2006. Statement 48 (Product Code GS48) can be ordered through the GASB's Order Department at 800/748-0659 or via its Web site at www.gasb.org.