GASB Issues Guidance on Fiduciary Component Units

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 ?duciary 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 de?ned contribution pension plans, de?ned contribution other postemployment bene?t (OPEB) plans, and employee bene?t plans other than pension plans or OPEB plans (other employee bene?t plans) as ?duciary component units in ?duciary fund ?nancial statements; and (c) enhance the relevance, consistency, and comparability of the accounting and ?nancial reporting for Internal Revenue Code (IRC) Section 457 deferred compensation plans (Section 457 plans) that meet the de?nition of a pension plan and for bene?ts provided through those plans.”

For more information, see the press release on the GASB’s Web site.