FAF TO CONDUCT POST-IMPLEMENTATION REVIEW OF GASB STANDARD ON IMPAIRMENT OF
CAPITAL ASSETS
Norwalk, CT, July 17, 2013—The Financial
Accounting Foundation (FAF) today announced that it will conduct a
Post-Implementation Review (PIR) of an accounting and financial reporting
standard for state and local governments regarding the impairment of capital
assets and insurance recoveries.
Issued in 2003, Governmental Accounting
Standards Board (GASB) Statement No. 42, Accounting
and Financial Reporting for Impairment of Capital Assets and for Insurance
Recoveries, establishes measurement guidance for capital asset
impairments and requires governments to report the effects of those impairments
when they occur, rather than as a part of the ongoing depreciation expense for
the capital asset or upon disposal of the capital asset. It also provides
uniform reporting guidance for insurance recoveries of state and local
governments.
Stakeholders who would like the opportunity to participate
in PIR surveys on GASB Statement 42, conducted by an independent survey firm on
behalf of the FAF, should register
online.
The PIR team recently completed its review of GASB Statements
No. 10, Accounting
and Financial Reporting for Risk Financing and Related Insurance Issues, and
No. 30, Risk
Financing Omnibus, which establish accounting and financial reporting
standards for risk financing and insurance-related activities of state and local
governments, including public risk pools. The FAF expects to issue the review
report in August.
For more information, visit the PIR
website.
About the Financial Accounting Foundation
The FAF is responsible for the oversight, administration, and
finances of both the Governmental Accounting Standards Board (GASB) and the
Financial Accounting Standards Board (FASB). The Foundation is also responsible
for selecting the members of both Boards and their respective Advisory
Councils.
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, http://www.gasb.org/.
/BODY>