Local Governments have something to be thankful for this week. On Thursday May 7, 2020, the Governmental Accounting Standards Board (GASB) officially approved guidance postponing effective dates on certain pronouncements. In response to challenges due to the COVID-19 pandemic GASB approved Statement 95, Postponement of the Effective Dates of Certain Authoritative Guidance. Statement 87, Leases, and related implementation guides will be postponed for eighteen months. All other statements and corresponding implementation guides with a current effective date of reporting period beginning after June 15, 2018, and later will have a twelve-month postponement.
The two most notable Statements that were postponed include:
- Statement 84, Fiduciary Activities, along with the related implementation guides are postponed one year or until calendar year 2020 for December 31 year-ends, or fiscal year 2021 for June 30 year-ends.
- Statement 87, Leases, along with the related implementation guides are postponed eighteen months, or until calendar year 2022 for December 31 year-ends or fiscal year 2022 for June 30 year-ends.
New effective dates are as follows:
- Statement 84, Fiduciary Activities, reporting periods beginning after December 15, 2019
- Statement 87, Leases, reporting periods beginning after June 15, 2021
- Statement 88, Certain Disclosures Related to Debt, including Direct Borrowings and Direct Placements, reporting periods beginning after June 15, 2019
- Statement 89, Accounting for Interest Cost Incurred before the End of a Construction Period, reporting periods beginning after December 15, 2020
- Statement 90, Majority Equity Interests, reporting periods beginning after December 15, 2019
- Statement 91, Conduit Debt Obligations, reporting periods beginning after December 15, 2021
- Statement 92, Omnibus 2020, reporting periods beginning after June 15, 2021
Per Statement 95, these postponements are effective immediately, but early adoption of the above standards is still encouraged. Statement 95 is available on the GASB website.
As with most matters surrounding COVID-19 changes are being made quickly. Melanson Heath is here to assist with any questions that you may have. In addition to staying up-to-date with GASB standards, Melanson Heath is staying on top of all COVID-19 related funding sources for Governments in Massachusetts, New Hampshire, and Vermont.