Governmental Accounting Standards Board Issues Technical Bulletin on Accounting Issues Associated with Tobacco Settlements.Business Editors NORWALK Norwalk (nôr`wôk'). 1 City (1990 pop. 94,279), Los Angeles co., S Calif.; settled in the 1850s, inc. 1957. With the arrival (1875) of the Southern Pacific RR, it became a center for the dairy and logging industries, but , Conn.--(BUSINESS WIRE)--May 11, 2004 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. (GASB GASB Governmental Accounting Standards Board ) has issued its Technical Bulletin No. 2004-1, Tobacco Settlement Recognition and Financial Reporting Entity Issues, which addresses accounting by state and local governments in connection with settlements made by U.S. tobacco companies. In 1998, the U.S. tobacco industry reached an agreement, known as the Master Settlement Agreement, with state governments releasing tobacco companies from present and future smoking-related claims that had been, or potentially could be, filed by the states. In exchange, the tobacco companies agreed to make annual payments in perpetuity Of endless duration; not subject to termination. The phrase in perpetuity is often used in the grant of an Easement to a utility company. in perpetuity adj. forever, as in one's right to keep the profits from the land in perpetuity. to the states, subject to certain conditions and adjustments. The GASB's Technical Bulletin clarifies accounting guidance on whether a Tobacco Settlement Authority that is created to obtain the rights to all or a portion of future tobacco settlement resources is a component unit of the government that created it. In addition, the Technical Bulletin clarifies recognition guidance for these transactions and for payments made to settling governments pursuant to the Master Settlement Agreement. 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. GASB project manager Ken Schermann, "the guidance provided by the Technical Bulletin is needed to provide users of financial statements comparable information on these significant transactions." About the Governmental Accounting Standards Board The GASB is the independent, not-for-profit Not-for-profit An organization established for charitable, humanitarian, or educational purposes that is exempt from some taxes and in which no one in profits or losses. organization formed in 1984 that establishes and improves financial accounting and reporting standards for state and local governments. Its seven members are drawn from the Board's diverse constituency, including preparers and auditors AUDITORS, practice. Persons lawfully appointed to examine and digest accounts referred to them, take down the evidence in writing, which may be lawfully offered in relation to such accounts, and prepare materials on which a decree or judgment may be made; and to report the whole, together of government financial statements, users of those statements and members of the academic community. More information about the GASB can be found at its website www.gasb.org. Governmental Accounting Standards Board Improving governmental accountability through better financial reporting. |
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