NORWALK, Conn.--(BUSINESS WIRE)--The Governmental Accounting Standards Board (GASB) today issued a response to the Financial Accounting Foundation’s (FAF) Post-Implementation Review (PIR) report on GASB Statements No. 3, Deposits with Financial Institutions, Investments (including Repurchase Agreements), and Reverse Repurchase Agreements, and No. 40, Deposit and Investment Risk Disclosures. The Statements require note disclosures regarding deposit and investment risks. Statement 3 also provides accounting guidance for repurchase and reverse repurchase agreements.
“The GASB welcomes the overall conclusion in the PIR report that Statements 3 and 40 continue to provide reliable and decision-useful information about deposit and investment risks to creditors and other financial statement users,” said GASB Chairman Robert H. Attmore. “The report’s findings indicate that the requirements can be understood, applied as intended, do not have any significant economic consequences, and that costs are in line with the Board’s and stakeholders’ expectations.”
The GASB also noted that the Financial Accounting Standards Board (FASB) issued a proposal to improve nongovernmental financial reporting on repurchase agreements in January 2013. The GASB will continue to monitor this project as it progresses to determine whether any proposed changes should be considered for the governmental environment.
The GASB’s full response to the Statements 3 and 40 PIR report is available on the GASB website.
This was the first PIR of GASB standards. The FAF is currently conducting a review of GASB Statements No. 10, Accounting and Financial Reporting for Risk Financing and Related Insurance Issues, and No. 30, Risk Financing Omnibus, an amendment of GASB Statement No. 10. Stakeholders who would like to participate in PIR surveys on GASB Statements 10 and 30, conducted by an independent survey firm on behalf of the FAF, should register online.
The PIR process, which is independent of the standard-setting process of the GASB and the Financial Accounting Standards Board (FASB), is intended to assist the FAF’s Board of Trustees with its ongoing efforts to evaluate the effectiveness of the standard-setting process for both organizations. The FAF Trustees’ oversight responsibility does not extend to recommending standard–setting action, which is the sole, independent responsibility of the GASB and the FASB. More information on the FAF’s PIR process can be found on the FAF website.
About the Financial Accounting Foundation
The FAF is responsible for the oversight, administration, and finances of both the Financial Accounting Standards Board (FASB) and its counterpart for state and local government, the Governmental Accounting Standards Board (GASB). 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, www.gasb.org.