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GASB exposure draft on colleges and universities.

The Governmental Accounting Standards Board issued an exposure draft that provides guidance on accounting and reporting models used by public colleges and universities. The draft also proposes guidance for financial statements that include public colleges and universities as component units of a state or local government.

According to the ED, public institutions of higher education should follow either of two models:

* The American Institute of CPAs College Guide model-the accounting and financial reporting guidance recognized by the 1973 AICPA industry audit guide, Audits of Colleges and Universities (as amended by AICPA Statement of Position no. 74-8, Financial Accounting and Reporting by Colleges and Universities) and by applicable Financial Accounting Standards Board and GASB pronouncements.

* The Governmental model-established by the National Council on Governmental Accounting (NCGA) Statement no. 1, Governmental Accounting and Financial Reporting Principles, as modified by subsequent NCGA and GASB pronouncements.

GASB Chairman James F. Antonio said the proposal "would clarify generally accepted accounting principles in this area and establish GAAP for governmental colleges and universities at the highest level of guidance in the GAAP hierarchy now proposed by the American Institute of CPAS." He added it would also provide a starting point that could ultimately lead to one or more pronouncements establishing one comprehensive accounting and financial reporting model for public colleges and universities.

If adopted as a final statement, the proposal would become effective for periods beginning after June 15, 1992. If comparative financial statements are presented, restatement of prior-year financial data would be required.

Comments on Governmental College and University Accounting and Financial Reporting Models are requested by July 31, 1991. One copy of the proposal is available without charge until July 31 from the GASB Order Department, 401 Merritt 7, P. 0. Box 5116, Norwalk, Connecticut 06856-5116.
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Publication:Journal of Accountancy
Date:Jul 1, 1991
Words:292
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