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Future Accounting Standard Changes(Continued) <br /> How the Changes in This Statement Will Improve Financial Reporting <br /> The requirements of this Statement will enhance consistency in the application of accounting and financial reporting <br /> requirements. Consistent reporting will improve the usefulness of information for users of state and local government <br /> financial statements, <br /> CASE Statement No.86- Certain Debt Extinguishment Issues <br /> Summary <br /> The primary objective ofthis Statement is to improve consistency in accounting and financial reporting for in-substance <br /> deferwance of debt by providing guidance for transactions in is cash and other monetary assets acquired with only <br /> existing resources-resources other than the proceeds of refunding debt-are placed in an irrevocable trust for the sole <br /> purpose of extinguishing debt.This Statement also improves accounting and financial reporting for prepaid insurance on <br /> debt that is extinguished and notes to financial statements for debt that is defeased in substance. <br /> Effective Date <br /> The requirements of this Statement are effective for reporting periods beginning after June 15,2017. Earlier application is <br /> encouraged. <br /> How the Changes in This Statement Will Improve Accounting and Financial Reporting <br /> The requirements of this Statement will Increase consistency in accounting and financial reporting for debt <br /> extinguishments by establishing uniform guidance for derecognizing debt that is defeased In substance, regardless of how <br /> cash and other monetary assets placed in an irrevocable trust for the purpose of extinguishing that debt were acquired. <br /> The requirements of this Statement also will enhance consistency in financial reporting of prepaid insurance related to <br /> debt that has been extinguished. In addition, this Statement will enhance the decision-usefulness of information in notes <br /> to financial statements regarding debt that has been defeased in substance. <br /> GASH Statement No.87-Leases <br /> Summary <br /> The objective of this Statement is to better meet the information needs of financial statement users by improving <br /> accounting and financial reporting for leases by governments. This Statement increases the usefulness of governments' <br /> financial statements by requiring recognition of certain lease assets and liabilities for leases that previously were classified <br /> as operating leases and recognized as inflows of resources or oufflows of resources based on the payment provisions of <br /> the contract. It establishes a single model for lease accounting based on the foundational principle that leases are <br /> financings of the right to use an underlying asset. Under this Statement, a lessee is required to recognize a lease liability <br /> and an intangible right-to-use lease asset, and a lessor is required to recognize a lease receivable and a deferred inflow <br /> of resources, thereby enhancing the relevance and consistency of information about governments' leasing activities. <br /> Effective Date and Transition <br /> The requirements of this Statement are effective for reporting periods beginning after December 16, 2019. Earlier <br /> application is encouraged. <br /> Leases should be recognized and measured using the facts and circumstances that exist at the beginning of the period of <br /> implementation(or, if applied to earlier periods, the beginning of the earliest period restated), However, lessors should not <br /> restate the assets underlying their existing sales-type or direct financing leases.Any residual assets for those leases <br /> become the carrying values of the underlying assets. <br /> 11�ople <br /> +I Younm <br /> 22 <br /> 165 <br />