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GASB issues ED on escheat property.

The Governmental Accounting Standards Board issued an exposure draft that would establish standards for the fund type to be used in reporting escheat property (property that reverts to the government because there are no legal claimants or heirs and usually is subject to recovery by legal claimants) as well as liabilities and interfund transfers related to such property.

According to the GASB, practitioners' differing interpretations of current standards dealing with escheat property can lead to different accounting treatments for similar property.

The proposed standard, which would be effective for financial statement periods beginning after June 15, 1994, requires escheat property to be reported either in an expendable trust fund or in the fund to which the property ultimately will revert. Escheat revenue would be reduced and a fund liability reported to the extent it is probable escheat property will be reclaimed and paid to claimants. Such payments would be reported as a reduction of the liability.

Single copies of the ED, titled Accounting for Escheat Property, are available gratis from the GASB order department by calling (203) 847-0700, ext. 10.
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Title Annotation:Governmental Accounting Standards Board exposure draft
Publication:Journal of Accountancy
Article Type:Brief Article
Date:Aug 1, 1993
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