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TOM JOSIAH CONSULTING, LLC
Middletown, DE 19709
ph: 302-559-2593
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Statement 65 - Items Previously Reported as Assets and Liabilities
Items Previously Reported as Assets and Liabilities
Issued in March 2012, Statement No. 65 Items Previously Reported as Assets and Liabilities in essence is a follow up to Statement No. 63, Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources and Net Position, and a clarification of Concept Statement 4, both of which were issued earlier. Concept Statement 4 provides that reporting a deferred outflow or inflow of resources should be completed under instances identified by the Board. As a follow to this, only two Statements, No 53 and 60 identify instances where assets and liabilities would be classify as deferred outflow or deferred inflow.
Statement No. 65 now establishes accounting and financial reporting standards that reclassify, as deferred outflows of resources or deferred inflows or resources, certain items that were previously reported as assets and liabilities. It also recognizes, as outflows of resources or inflows of resources, certain items that were previously reported as assets and liabilities. The requirements of this Statement apply only to accounting and financial reporting for governmental activities, business-type activities, proprietary funds, and fiduciary funds, except where noted by the Board. The Statement provides a list of assets and liabilities that will now be considered deferred inflows or outflows of resources. Examples of these items common to most governmental entities are:
The Statement restricts the use of the term ‘deferred’ only to those items reported as deferred outflows of resources or deferred inflows of resources. Also, per the Statement, assets should be combined with deferred outflows of resources and liabilities should be combined with deferred inflows of resources for purposes of fulfilling the major fund determination.
Statement No. 65 is effective for financial statements for periods beginning after December 15, 2012. The board encourages earlier application. In anticipation of the effective date of this Statement, business managers should be evaluating the changes that will be required under this Statement and if any early action is needed to ensure compliance with the provisions of the Statement. Please contact me with further questions.
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TOM JOSIAH CONSULTING, LLC
Middletown, DE 19709
ph: 302-559-2593
teejaycp