Each year, the Governmental Accounting Standards Board (GASB) and the Financial Accounting Standards Board (FASB) issue a number of accounting pronouncements and other implementation guidance. In January, Rehmann hosted two webinars to break down the significant changes in 2023. Here are the top three things you need to know concerning governmental GAAP updates and nonprofit GAAP updates.
Governmental GAAP Update
- GASB 87, Leases: Governments need to record new leased asset/leased liabilities or lease receivable/deferred inflows on their balance sheet. While conceptually straightforward, the actual implementation of this standard required careful evaluation of agreements, present value calculations, and involved financial statement disclosures.
- GASB 96, Subscription-Based Information Technology Arrangements: Governments will need to record new subscription assets and subscription liabilities on their balance sheet. Contracts with software vendors will have to be carefully considered for the type of service being provided.
- Upcoming pronouncements and concept statements:
- GASB 94, Public-Private and Public-Public Partnerships and Availability Payment Arrangements
- GASB 101, Compensated Absences
- GASB Concept Statement No. 7
To view the webinar recording and slide deck, click here.
Nonprofit GAAP Update
- ASU 2020-07Presentation and Disclosures by Not-For-Profit Entities for Contributed Nonfinancial Assets: If your organization has these types of transactions, additional disclosure information will need to be presented in your financial statements starting for fiscal years after June 15, 2021.
- ASC 842, Leases: Requires an entity to determine whether a contract is a lease or contains a lease component.
- ASC 842: Requires that all leases, greater than 12 months when the practical expedient is elected, whether operating or finance, will now show on the Statement of Financial Position a right-of-use asset and lease liability.
To view the webinar recording and slide deck, click here.
Keeping up with these ever-changing rules can be challenging and time-consuming. If you need help navigating what this means for your organization, contact your Rehmann advisor or email us at [email protected].
