GASB Proposes Guidance on Capitalization of Interest Cost and Implementation of Recent Pronouncements

BROADCASTS

GASB Proposes Guidance on Capitalization of Interest Cost and Implementation of Recent Pronouncements

December 20, 2017

GASB Needs Your Feedback on Exposure Drafts

The Governmental Accounting Standards Board (GASB) has issued two Exposure Drafts related to capitalization of interest cost and a proposed Implementation Guide that addresses multiple topics – including pensions. Tribes should submit comments on the Exposure Drafts. This is your opportunity to provide feedback on the effectiveness of these requirements and suggest ways that they could be improved. Engagement in the final reporting process can help ensure that tribal concerns and needs are heard by the GASB.

Capitalization of Interest Cost

Comments Due March 5, 2018 

The Exposure Draft, Accounting for Interest Cost during the Period of Construction, proposes guidance that would enhance the relevance and comparability of information about capital assets and the cost of borrowing for a reporting period. Does your tribe have an opinion on whether capitalization should defer depending on if a borrowing is taxable or tax exempt? What criteria should be used to determine capitalization?

Implementation Guidance:

Comments Due February 16, 2018

The proposed Implementation Guide, Implementation Guidance Update - 201Y, changes to a range of topics, including pensions, other post employment benefits, the statistical section, regulatory reporting, and tax abatement disclosures. The proposed Implementation Guide also includes amendments to previously issued implementation guidance.



Resources:

Accounting for Interest Cost During the Period of Construction, Exposure Draft

Implementation Guidance Update—201Y

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