NEWS RELEASE 08/26/11
GASB Proposes Recognition of Specific Items as
Deferred Outflows and Deferred Inflows of ResourcesNorwalk, CT,
August 26, 2011 — The Governmental Accounting Standards Board (GASB)
today issued an Exposure Draft intended to apply its conceptual definitions of
deferred outflows of resources and deferred inflows of resources elements to a
broader range of items in order to enhance consistency in state and local
government financial statements. The proposed Statement, Reporting Items
Previously Recognized as Assets and Liabilities, would reclassify or
recognize certain items currently being reported as assets and liabilities as
one of four financial statement elements—deferred outflows of resources,
outflows of resources, deferred inflows of resources, or inflows of resources.
Currently, many items that appear to meet the definition of deferred
outflows of resources and deferred inflows of resources according to Concepts
Statement No. 4, Elements of Financial Statements, are not specifically
identified as such throughout the GASB’s authoritative literature. Because the
Concepts Statement specifies that recognition of deferred outflows and deferred
inflows should be limited to those instances identified in authoritative GASB
pronouncements, guidance is needed to determine which balances should be
reported as deferred outflows of resources or deferred inflows of resources
rather than as assets or liabilities.
"There is a clear need for guidance
that clarifies what items meet the definition of a deferred outflow of resources
or a deferred inflow of resources," states GASB Chairman Robert H. Attmore.
"This proposed Statement identifies the items that the Board has determined meet
its conceptual definitions of the elements of a statement of financial position.
We encourage stakeholders to review and comment on whether they agree or
disagree with our conclusions."
The requirements of this proposed
Statement would be effective for periods beginning after June 15, 2012, with
earlier application encouraged.
Copies of the Exposure Draft, including
instructions on how to provide written comments to the GASB, may be downloaded
free of charge from www.gasb.org. The comment
deadline is November 18, 2011.
About the Governmental
Accounting Standards Board
The GASB is the independent, not-for-profit organization formed in 1984 that
establishes and improves financial accounting and reporting standards for state
and local governments. Its seven members are drawn from the Board's diverse
constituency, including preparers and auditors of government financial
statements, users of those statements, and members of the academic community.
More information about the GASB can be found at its website www.gasb.org.