Note X – Government Combinations
Government Combinations: Mergers, Transfers of Operations, Acquisitions, Disposals of Operations
A template for this note is not available. See “Instructions to preparer:” for various disclosures that may be required.
Instructions to preparer:
Adjust the title appropriately to the government’s combination. The following disclosure applies to any combination:
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Brief description of combination,
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Date of combination, and
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Brief description of the primary reason for the combination.
Government Mergers and Transfers of Operations
The new/continuing government should disclose:
1. Amounts recognized for each financial element in the statement of net position of the merged entity:
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Within total assets, distinguishing: current assets, capital assets, and other assets
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Within total liabilities, distinguishing: current amount from long-term amounts
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Deferred outflows and inflows
2. Brief description of significant adjustment, and
3. Initial amounts recognized by the new/continuing government if different from those previously recognized by the merged entity (because of adjustments).
Government Acquisitions
For government acquisition, the acquiring government should disclose:
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Brief description of the consideration provided,
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Total amount of net position acquired, and
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Brief description of contingent consideration arrangements.
Disposals of Operations
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A government disposing of operations should disclose:
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Identification of operations that were transferred or sold,
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Description of the facts and circumstances leading to the disposal,
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Total expenses (distinguishing between operating and nonoperating),
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Total revenues (distinguishing between operating and nonoperating), and
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Total governmental fund revenues and expenditures.
For a detailed discussion of the governmental combinations see GASB Statement 69, Government Combinations and Disposals of Government Operations.