The Governmental Accounting Standards Board (GASB) releases new accounting standards nearly every year, and local governments have to evaluate and implement them. We know it can be challenging and time-consuming to implement new standards properly. But as auditors, we also know that a poorly planned implementation can lead to financial statement errors and raise concerns about the quality of your internal controls.
In May, the Governmental Accounting Standards Board (GASB) voted to delay implementation of several new accounting standards. The decision by GASB took effect immediately, and came in response to requests by governments across the country grappling with the coronavirus pandemic.
I want to share an important update with you. The Governmental Accounting Standards Board (GASB) voted Thursday, May 7 to delay implementation of several new accounting standards. The decision by GASB takes effect immediately, and comes in response to requests by governments across the country as they grapple with the coronavirus pandemic.
Accounting and reporting standards and guidance for leases are changing for both GAAP and cash basis local governments, effective for fiscal years ending December 31, 2020, and after.
Although you won't be preparing your financial statements and notes until early 2021, those first lease payments under the new standard will begin to flow in January 2020. Will you be ready?
Accounting and reporting principles are changing
Local governments are beginning to implement GASB Statement No. 83 on asset retirement obligations, or ARO's, which is effective for reporting periods beginning after June 15, 2018. For GAAP reporting entities, this new standard requires reporting liabilities for future costs related to retiring assets. For example, costs related to a well or sewer lagoon closure or reclamation of gravel or sand stock areas. Cash basis governments should report these obligations on Schedule 9 (Schedule of Liabilities) and disclose them.
In June 2017, the Governmental Accounting Standards Board (GASB) issued Statement No. 87, a new accounting and reporting standard regarding leases.
Governmental Accounting Standards Board (GASB) Statement 75, Accounting and Reporting for OPEB is effective for the Reporting Year 2018 (this year!). OPEB, or post-employment benefits other than pension, includes benefits such as healthcare provided through a pension plan or separately (medical, dental, vision, hearing, etc.) and other benefits when provided separately from a pension plan, such as: life insurance, long-term care, disability, and more.
Plenty of attention surrounds a new 
Governmental Accounting Standards Board (GASB) statement in the year it is implemented. Then we tend to forget about them in subsequent years. Not all GASB statements are relevant or material for all governments in the year they are implemented, but all governments should continue to monitor them.
Last fall, we posted an article strongly encouraging governments to start evaluating activities that might be classified as fiduciary activities under the Governmental Accounting Standards Board's (GASB) recently issued Statement No. 84.
The Government Accounting Standards Board (GASB) recently issued a new standard, GASB Statement 83, to provide accounting guidance on asset retirement obligations (AROs). The GASB issued this standard because many governments have not been reporting these liabilities or may have been applying other guidance (such as FAS 143). The standard is expected to resolve these inconsistencies and may result in some governments recording potentially significant liabilities.