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
Originally published July 26, 2019
Updated October 28, 2024
This blog post was originally published in July 2019, but we've recently updated the Identifying Asset Retirement Obligations Guide. You can find the new Guide in SAO’s Resource Library. We've also updated the links in this post for your convenience.
Here’s what’s new in the Guide:
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.
In June 2017, the Governmental Accounting Standards Board (GASB) issued Statement No. 87, a new accounting and reporting standard regarding leases.
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.