T he L ate st GASB Imple me ntation Guidanc e Kansas Gove r nme - PowerPoint PPT Presentation

T he L ate st GASB Imple me ntation Guidanc e Kansas Gove r nme nt F inanc e Offic e r s Annual Confe r e nc e Che ste r Mo ye r, CPA Oc to b e r 13, 2017

So urc e o f info rma tio n  All o f the info rma tio n wa s pulle d dire c tly fro m the GASB sta nda rds a nd imple me nta tio n g uide s a va ila b le o nline  We will b e c o ve ring a summa ry o f ne w pro no unc e me nts a nd re le va nt imple me nta tio n g uida nc e 2

GASB Sta te me nt No . 74  T itle : F ina nc ia l Re po rting fo r Po ste mplo yme nt Be ne fit Pla ns Othe r T ha n Pe nsio n Pla ns  E ffe c tive Da te : F isc a l ye a rs b e g inning a fte r June 15, 2016

GASB Sta te me nt No . 74  E sse ntia lly a pplie s re q uire me nts simila r to tho se in GASB Sta te me nt No . 67 to OPE B Pla ns a dministe re d thro ug h trusts  T wo fina nc ia l sta te me nts—the sta te me nt o f fiduc ia ry ne t po sitio n a nd the sta te me nt o f c ha ng e s in fiduc ia ry ne t po sitio n—a re re q uire d  Additio na lly, no te s a nd RSI simila r to GASB Sta te me nt No . 67 a re re q uire d 4

GASB Sta te me nt No . 75  T itle : Ac c o unting a nd F ina nc ia l Re po rting fo r Po ste mplo yme nt Be ne fits Othe r T ha n Pe nsio ns  E ffe c tive Da te : F isc a l ye a rs b e g inning a fte r June 15, 2017

GASB Sta te me nt No . 75  Applie s re q uire me nts simila r to GASB Sta te me nt No . 68 to OPE B e mplo ye rs  Sing le e mplo ye r a nd a g e nt e mplo ye rs wo uld re po rt a ne t OPE B lia b ility e q ua l to the pre se nt va lue o f pro je c te d b e ne fit pa yme nts le ss the OPE B pla n’ s fiduc ia ry ne t po sitio n  Co st sha ring e mplo ye rs wo uld re po rt a lia b ility e q ua l to the ir pro po rtio na l sha re o f the pla n’ s ne t OPE B lia b ility  No te disc lo sure s a nd RSI simila r to GASB Sta te me nt No . 68 a re a lso re q uire d 6

Sta te me nt No . 82 F ixe s  F o r the RSI re q uire d b y Sta te me nts No . 67 a nd 68, c o ve re d pa yro ll (inste a d o f c o ve re d-e mplo ye e pa yro ll) is to b e pre se nte d  Co ve re d-e mplo ye e pa yro ll = pa yro ll o f e mplo ye e s pro vide d with pe nsio ns  Co ve re d pa yro ll = po rtio n o f c o mpe nsa tio n pa id upo n whic h pla n c o ntrib utio ns a re b a se d  Any de via tio ns fro m Ac tua ria l Sta nda rds o f Pra c tic e a re no t c o nside re d to b e in c o nfo rmity with Sta te me nts No . 67, 68 o r 73

GASB Sta te me nt No . 83  T itle : Ce rtain Asse t Re tire me nt Ob lig atio ns  E ffe c tive Da te : F o r re po rting pe rio ds b e g inning a fte r June 15, 2018

GASB Sta te me nt No . 84  T itle : F iduc iary Ac tivitie s  E ffe c tive Da te : F o r re po rting pe rio ds b e g inning a fte r De c e mb e r 15, 2018

T ype s o f F iduc ia ry F unds GASB 84  Pe nsio n a nd OPE B trust funds  I nve stme nt trust funds  Priva te -purpo se trust funds  Custo dia l funds

Custo dia l F unds GASB 84  Re pla c e a g e nc y funds unde r c urre nt mo de l  F o r a c tivity no t he ld in a trust  Unlike a g e nc y funds, c usto dia l funds will ha ve a n “inc o me sta te me nt”  Unlike a g e nc y funds, c usto dia l funds will ha ve ne t po sitio n

GASB Sta te me nt No . 87  T itle : L e ase s  E ffe c tive Da te : F o r re po rting pe rio ds b e g inning a fte r De c e mb e r 15, 2019  E sta b lishe s a sing le a ppro a c h to a c c o unting fo r le a se s tha t will e limina te the c urre nt o pe ra ting a nd c a pita l le a se c la ssific a tio ns

L e sse e Ac c o unting GASB 87  Re c o g nize a le a se lia b ility a nd a n inta ng ib le a sse t a t the b e g inning o f a le a se  L e a se lia b ility me a sure d a t pre se nt va lue o f le a se pa yme nts o ve r the le a se te rm  I nta ng ib le a sse t me a sure d a t the va lue o f the le a se lia b ility plus a ny pre pa yme nts a nd c e rta in indire c t c o sts  L e a se lia b ility re duc e d a s pa yme nts a re ma de  I nte re st is a c c rue d o n le a se lia b ility  I nta ng ib le a sse t a mo rtize d to e xpe nse o ve r sho rte r o f the life o f the unde rlying a sse t o r the le a se te rm 13

2017-1: 4.18  Q—A g o ve rnme nt inc lude s the pe nsio n pla n thro ug h whic h it pro vide s b e ne fits to its e mplo ye e s a s a fiduc ia ry fund in its fina nc ia l re po rt. T he pe nsio n pla n do e s no t issue a sta nd-a lo ne fina nc ia l re po rt. Sho uld the g o ve rnme nt ma ke the no te disc lo sure s a nd pre se nt the sc he dule s o f re q uire d supple me nta ry info rma tio n (RSI ) re q uire d b y Sta te me nt 67 fo r the pe nsio n pla n, a s we ll a s the no te disc lo sure s a nd sc he dule s o f RSI re q uire d fo r a n e mplo ye r tha t pro vide s b e ne fits thro ug h the pla n?  A—Ye s. I n this c irc umsta nc e , the pre se nta tio n o f info rma tio n fro m two pe rspe c tive s is re q uire d within the sa me re po rt—first, fro m the pe rspe c tive o f a n e mplo ye r tha t pro vide s its e mplo ye e s with b e ne fits thro ug h the pe nsio n pla n a nd, se c o nd, fro m the sta ndpo int o f the pe nsio n pla n itse lf. Ac c o rding ly, in a dditio n to a pplying e mplo ye r re po rting re q uire me nts, the g o ve rnme nt sho uld inc lude in its fina nc ia l re po rt info rma tio n re q uire d b y Sta te me nt 67 fo r the pe nsio n pla n. Ho we ve r, fo o tno te 9 o r fo o tno te 11 o f Sta te me nt 67, a s a pplic a b le , pro vide s fo r c o o rdina tio n o f e mplo ye r a nd pla n no te disc lo sure s o r sc he dule s o f RSI within the e mplo ye r’ s fina nc ia l re po rt with the o b je c tive o f a vo iding unne c e ssa ry duplic a tio n o f info rma tio n within tha t re po rt. 14

2017-1: 4.36 (slide 1 o f 2)  Q—A lo c a l g o ve rnme nt ha s a n inve stme nt po sitio n in a n e xte rna l inve stme nt po o l. Ho w sho uld the lo c a l g o ve rnme nt’ s inve stme nt po sitio n b e c a te g o rize d within the fa ir va lue hie ra rc hy fo r purpo se s o f the no te disc lo sure re q uire me nt in pa ra g ra ph 81a (2) o f Sta te me nt No . 72, F air Value Me asure me nt and Applic atio n ?  A—I f the e xte rna l inve stme nt po o l is c o mplia nt with pa ra g ra ph 4 o f Sta te me nt No . 79, Ce rtain E nve stme nt Po o ls and Po o l Partic ipants , xte rnal I a nd fo r fina nc ia l re po rting purpo se s e le c ts to me a sure a ll o f its inve stme nts a t a mo rtize d c o st, the lo c a l g o ve rnme nt’ s inve stme nt po sitio n sho uld no t b e me a sure d a t fa ir va lue . I nste a d, it sho uld b e me a sure d a t a mo rtize d c o st in a c c o rda nc e with pa ra g ra ph 41 o f Sta te me nt 79 a nd, thus, sho uld no t b e c a te g o rize d within the fa ir va lue hie ra rc hy fo r purpo se s o f pa ra g ra ph 81a (2) o f Sta te me nt 72. 15

2017-1: 4.36 (slide 2 o f 2)  I f, inste a d, the e xte rna l inve stme nt po o l g e ne ra lly me a sure s its inve stme nts a t fa ir va lue in a c c o rda nc e with pa ra g ra ph 5 o f Sta te me nt 79 o r pa ra g ra ph 16 o f Sta te me nt No . 31, Ac c o unting and F inanc ial Re po rting fo r Ce rtain I nve stme nts and fo r E xte rnal nve stme nt Po o ls, a s a me nde d, the lo c a l g o ve rnme nt’ s po sitio n I sho uld b e me a sure d a t fa ir va lue in a c c o rda nc e with pa ra g ra ph 41 o f Sta te me nt 79 a nd pa ra g ra ph 11 o f Sta te me nt 31, a s a me nde d. T his is the c a se re g a rdle ss o f whe the r the po o l tra nsa c ts with pa rtic ipa nts a t a flo a ting ne t a sse t va lue pe r sha re o r a fixe d ne t a sse t va lue pe r sha re (fo r e xa mple , $1.00). Po sitio ns in tho se po o ls a lso a re no t re q uire d to b e c a te g o rize d within the fa ir va lue hie ra rc hy fo r purpo se s o f pa ra g ra ph 81a (2) o f Sta te me nt 72. 16