 |
|
 |
GASB Summaries |
|
|
|
|
GASB Summaries |
Accounting:FASB SummariesFASB Exposure Drafts GASB Summaries GASB Exposure Drafts AICPA White Paper Taxation:Federal Tax FormsNew York State Tax Forms New York City Tax Forms Other State Tax Forms Tax Acct. & Regulatory Bulletin Ethics & RegulationCode of ConductBriefing Book on Issues Risk ManagementPeer Review SummariesRisk Mgt.& Liability Guidebook BookshelfOther CPA Journal PublicationsForensic & Litigation Svcs. Directory Career Opportunities Handbook |
Statement No. 23 Accounting and Financial Reporting for Refundings of Debt Reported by Proprietary Activities STATUS Issue Date: December 1993 Effective Date: For periods beginning after June 15, 1994 Affects: Amends NCGAI 6, paragraph 5 and Appendix Supersedes NCGAI 9, paragraphs 13 and 14 Amends GASBS 7, paragraph 43, note X Affected by: No other pronouncements Primary Codification Section Reference: D20 Abbreviations for Accounting Pronouncements GASBS - GASB Statements GASBI - GASB Interpretations GASBTB - GASB Technical Bulletins GASBCS - GASB Concepts BFC - Basis for Conclusions NCGAS - NCGA Statements NCGAI - NCGA Interpretations SOP - AICPA Statements of Position ASLGU - AICPA Audit Guide SUMMARY This Statement establishes standards of accounting and financial reporting for current refundings and advance refundings resulting in defeasance of debt reported by proprietary activities-that is, proprietary funds and other governmental entities that use proprietary fund accounting. Refundings involve the issuance of new debt whose proceeds are used to repay previously issued debt. The proceeds may be used immediately for this purpose (a current refunding), or they may be placed with an escrow agent and invested until they are used to pay principal and interest on the old debt at a future time (an advance refunding). For current refundings and advance refundings resulting in defeasance of debt reported by proprietary activities, this Statement requires that the difference between the reacquisition price and the net carrying amount of the old debt be deferred and amortized as a component of interest expense in a systematic and rational manner over the remaining life of the old debt or the life of the new debt, whichever is shorter. On the balance sheet, the deferred amount should be reported as a deduction from or an addition to the new debt liability. In addition, this Statement makes the disclosures required by paragraphs 11-13 of GASB Statement No. 7, Advance Refundings Resulting in Defeasance of Debt, applicable to current refundings reported by proprietary activities. The provisions of this Statement are effective for financial statements issued for periods beginning after June 15, 1994, with earlier application encouraged. Retroactive application is permitted but not required. Unless otherwise specified, pronouncements of the GASB apply to financial reports of all state and local governmental entities, including public benefit corporations and authorities, public employee retirement systems, utilities, hospitals and other healthcare providers, and colleges and universities. Paragraph 3 discusses the applicability of this Statement. Copyright by Governmental Accounting Standards Board. All Rights Reserved. Used by Permission. Click Here for Order Information
The
CPA Journal | The
Trusted Professional | Newswire
Links | Government
Relations | Articles
Archive
|