GASB issues technical bulletin and interpretation.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. published a new technical bulletin on deposits and investments for certain bank holding company transactions, as well as a new interpretation on recognizing property tax revenue. Technical Bulletin (TB) no. 97-1, Classification of Deposits and Investments into Custodial Credit Risk Categories for Certain Bank Holding Company Transactions, clarifies certain provisions of GASB GASB Governmental Accounting Standards Board Statement no. 3, Deposits with Financial Institutions, Investments (including Repurchase Agreements Repurchase agreement An agreement with a commitment by the seller (dealer) to buy a security back from the purchaser (customer) at a specified price at a designated future date. ), and Reverse Repurchase Agreements Reverse Repurchase Agreement The purchase of securities with the agreement to sell them at a higher price at a specific future date. For the party selling the security (and agreeing to repurchase it in the future) it is a repo for the party on the other end of the . It explains how, depending on certain sets of circumstances, deposits and investments with bank holding companies should be classified under the custodial risk categories in Statement no. 3. It is effective for years beginning after December 15, 1997. A defining term In Interpretation no. 5, Property Tax Revenue Recognition in Governmental Funds, the GASB clarifies the term available as it relates to recognizing property tax revenue under 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. The term now means "collected within the current period or expected to be collected soon enough thereafter to be used to pay liabilities of the current period." This eliminates the "due date" criterion from the definition but does not change the 60-day collection deadline for due or past-due status. This interpretation win be effective for periods beginning after June 15, 2000. Early application is encouraged. Copies of TB no. 97-1 (code no. GTB GTB Global Transaction Banking GTB General Terms of Business GTB Global Trust Bank GTB Go To Bed GTB Grand Traverse Band (of Ottawa and Chippewa Indians; Michigan) GTB Ghana Tourist Board GTB Gay Teen Boys 01; $6 each) and Interpretation no. 5 (code no. GI05; $8.50 each) are available from the GASB order department by calling 203-847-0700, ext. 555. |
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