CCP 05-15-2006 - Laserfiche WebLink

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rfj r'61,~ City of Arden Hills April 14, 2006 Page Eighteen . Future Accounting Standard Changes The following Governmental Accounting Standards Board (GASB) Statements have been issued and may have an impact on future City financial statements: GASB Statement No. 42 - Accounting and Financial Reportingfor Impairment afCapital Assets andfor Insurance Recoveries This starement is effectjve for periods beginning after December 15~ 2004 and deals with the accounting and financial reporting for impairment of capita] assets. According to the GASB, "This Statement improves financial reporting because it requires governments to report the effects of capital asset impairments in their financial statements when they occur rather than as a part of the ongoing depreciation expense for the capital asset or upon disposal of the capital asset. Users of financial statements will better understand when impairments have occurred and what their financial Impact is on the City. This statement also enhances comparability offi.nanclal statemen.ts bemeen govemments by requiring all govemments to account for insurance recoveries in the same manner!' GASB Statement No. 43 - Financial Reportingfor Post employment Benefit Plans Other than Pension Plans This statement is effective one year prior to the effective date of Statement No. 45 for the employer or largest pal1icipating employer in the benefit plan for multiple-employer plans. Accordingto Statement No. 43, "The objective of this statement is to establish unifonn standards of financial reporting by State and local governmental entities for other post employment benefit plans (OPEB plans), The term other post employment benefits (OPEB) refers to post employment benefits other than pension benefits and includes (a) post employment healthcare benefits and (b) other types of post employment benefits (for example, life insurance) if provided separately from a pension plan. The term plans, in this context, refers to trust or other funds through which assets are accumulated to finance OPEB, and benefits are paid as they come due. This Statement provides standards for measurement, recognition. and display of the assets, liabilities, and, where appllcable, net assets and changes in net assets of such funds and for related disclosures. The requirements of this statement apply whether an OPEB plan is reponed as a trust or agency fund or a fiduciary component unit of a participating employer or plan sponsor, or the plan is separately repol1ed by a public employee retirement system (PERS) or other entity that administers the plan." . GASB Statement No. 44 - Economic Condition Reporting: The Statistical Section an amendment ofNCGA Statement 1 This statement only applies to 5tatistica1 sections of financial statements. It is effective for periods beginning after lune 15,2005. The City currently docs not prepare a statistical section. . %2.835.9090 . Fax %2.835.3261 www.aemcpaS.l:Olll