GASB update for utilities: Q2 2018

In recent years, new governmental accounting standards have been issued frequently. Many of these Governmental Accounting Standards Board (GASB) pronouncements could have a significant impact on public utilities.

As of second quarter 2018 (Q2 2018), below are the current accounting standards that might impact your utility, projected effective dates and resources from Baker Tilly technical research and the GASB website to use while implementing new standards.

GASB standards to be implemented for financial statements issued after June 15, 2018

  • GASB Statement No. 75 – Accounting and Reporting for Postemployment Benefits Other Than Pensions
  • Implementation Guide No. 2017-2, Financial Reporting for Postemployment Benefit Plans Other than Pension Plans
  • Implementation Guide No. 2017-3, Accounting and Financial Reporting for Postemployment benefits other than pensions
Fiscal years beginning after June 15, 2017
GASB 75GASB Statement No. 75
 What you should know about GASB 75 webinar
Reporting periods beginning after June 15, 2017
Interpretation Guide 2017-2Financial Reporting for OPEB
Interpretation Guide 2017-3Accounting and financial reporting for OPEB

 GASB standards for future implementations and for which earlier application is encouraged:

  • GASB Statement No. 83 – Certain Asset Retirement Obligations
  • GASB Statement No. 84 – Fiduciary Activities
  • GASB Statement No. 87 – Leases
  • GASB Statement No. 88 – Certain Disclosures Related to Debt, Including Direct Borrowings and Direct Placement
  • GASB Statement No. 89 – Accounting for Interest Cost Incurred before the End of Construction Period
Reporting periods beginning after June 15, 2018
GASB 83GASB Statement No. 83
 Recording asset retirement obligations
GASB 88GASB Statement No. 88
Reporting periods beginning after Dec. 15, 2018
GASB 84GASB Statement No. 84
 Fiduciary activities changes affecting existing agency funds
 Reporting fiduciary activities webinar
 Understanding reporting requirements for fiduciary activities
Reporting periods beginning after Dec. 15, 2019
GASB 89GASB Statement No. 89
GASB 87GASB Statement No. 87
 Financial report model improvements

 Current GASB projects

GASB maintains a current projects board that includes status updates and projected issuance timelines for due process documents and final standards. An overview of current GASB projects is listed below. For more details on a specific project, view the GASB project board.

  • Conceptual framework – recognition
  • Financial reporting model
  • http://bakertilly.com/insights/gasb-financial-reporting-model-project-potential-impact-on-utilities
  • Conduit debt
  • Equity ownership issues
  • Implementation guide for GASB 84 on fiduciary activities
  • Implementation guide for GASB 87 on leases
  • Information technology arrangements including cloud computing
  • Public-private partnerships
  • Revenue and expense recognition
  • Deferred compensation plans
  • Going concern disclosures

GASB has a full menu of areas under review and potential roll out in the future. Baker Tilly continues to provide updates as the GASB projects progress through the preliminary stage to exposure drafts with the opportunity for public comment. As standards are finalized, we provide technical summaries that cut through the clutter to the heart of what you need for a seamless implementation.

For more information on this topic, or to learn how Baker Tilly energy and utility specialists can help, contact our team.