GASB issues two proposals for comment.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. distributed for comment proposals on accounting for investments and deferred compensation plans. For investments, the GASB GASB Governmental Accounting Standards Board issued a proposed technical bulletin that would clarify certain provisions of GASB Statement no. 3, Deposits with Financial Institutions, Investments (including Repurchase Agreements) 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 . The bulletin would explain how, depending on certain sets of circumstances, deposits and investments with bank holding companies should be classified under the custodial risk categories in GASB Statement no. 3. The proposal, Classification of Deposits and Investments into Custodial Credit Risk Categories for Certain Bank Holding Company Transactions, would be effective for years beginning after December 15, 1997. For deferred compensation plans, the GASB issued a proposal to rescind To declare a contract void—of no legal force or binding effect—from its inception and thereby restore the parties to the positions they would have occupied had no contract ever been made. rescind v. its Statement no. 2, Financial Reporting of Deferred Compensation Plans Adopted under the Provisions of Internal Revenue Code The Internal Revenue Code is the body of law that codifies all federal tax laws, including income, estate, gift, excise, alcohol, tobacco, and employment taxes. These laws constitute title 26 of the U.S. Code (26 U.S.C.A. § 1 et seq. Section 457, and to establish new accounting and reporting standards for the plans of state and local governments and tax-exempt organizations. According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. the proposal, if a section 457 deferred compensation plan met current requirements for inclusion in a government's fiduciary funds, it would be reported as an expendable trust fund in that government's financial statements. This proposal would be effective January 1, 1999. Comments on both proposals were due in August. Copies can be accessed on the GASB Web site at http://www. gasb.org. |
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