AICPA Groups Comment on GASB Proposals Addressing Split-Interest Agreements and Implementation Guide Updates 

Published December 22, 2015

The American Institute of CPAs’ (AICPA) State and Local Government Expert Panel (SLGEP) and Private Companies Practice Section (PCPS) Technical Issues Committee (TIC) have submitted comment letters on the Governmental Accounting Standards Board (GASB) Exposure Drafts (ED), Irrevocable Split-Interest Agreements and Implementation Guide No. 20XX-X, Implementation Guide Update-20XX.

The SLGEP recommended in its November 18 letter on the Irrevocable Split-Interest Agreements ED that the Board delay the project and combine it with the reexamination of GASB Statement No. 33, Accounting and Financial Reporting for Nonexchange Transactions, to promote consistent accounting for nonexchange transactions broadly.  The SLGEP provided specific comments on the ED, including a request to clarify the scope and observations on asset recognition criteria.

In its September 18 letter, TIC agreed with the provisions of the split-interest ED but suggested the Board add examples of various types of split‐interest agreements, with the appropriate journal entries, to a future Implementation Guide. TIC also noted several areas involving the scope and measurement sections of the ED that could create inconsistencies in practice if not corrected.

Both groups issued letters to the GASB in response to the Implementation Guide Update.  The December 1 TIC letter and December 10 SLGEP letter provide detailed comments on various questions and answers of the ED.




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