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 ?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.