In part two of this series about Governmental Accounting Standards Board (GASB) statement no. 103, financial reporting model improvements, we covered the changes to the statement of revenues, expenses and changes in fund net position for proprietary funds. In this final article, we will discuss the remaining requirements of the new standard and recommendations for implementation.
Unusual or infrequent items
GASB statement no. 62 provided definitions for both “unusual in nature” and “infrequency of occurrence” which were then used to determine if items should be reported as special (either unusual or infrequent) or extraordinary (both unusual and infrequent). These concepts were taken from the pre-existing Financial Accounting Standards Board (FASB guidance), however there continued to be confusion and inconsistency in practice of reporting.
GASB 103 uses the existing definitions for “unusual in nature” and “infrequency of occurrence” and requires activities that meet these definitions to be reported as unusual items or infrequent items. These inflows and outflows should be presented separately and not netted on the:
- Government-wide statement of activities
- Governmental fund statement of revenues, expenditures and changes in fund balances
- Proprietary fund statement of revenues, expenses and changes in fund net position
These inflows/outflows are the last item presented in each statement of flows. In addition, the footnotes should disclose the program, function or identifiable activity that each unusual or infrequent item is related to, and if each was within the control of management.
Major component unit reporting
