GASB Issues Guidance on Fiduciary Component Units
June 23, 2020
The GASB has issued Statement 97, Certain Component Unit Criteria, and Accounting and Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans. The standard will “(a) increase consistency and comparability related to the reporting of ﬁduciary component units in circumstances in which a potential component unit does not have a governing board and the primary government performs the duties that a governing board typically would perform; (b) mitigate costs associated with the reporting of certain deﬁned contribution pension plans, deﬁned contribution other postemployment beneﬁt (OPEB) plans, and employee beneﬁt plans other than pension plans or OPEB plans (other employee beneﬁt plans) as ﬁduciary component units in ﬁduciary fund ﬁnancial statements; and (c) enhance the relevance, consistency, and comparability of the accounting and ﬁnancial reporting for Internal Revenue Code (IRC) Section 457 deferred compensation plans (Section 457 plans) that meet the deﬁnition of a pension plan and for beneﬁts provided through those plans.”
For more information, see the press release on the GASB’s Web site.