The Governmental Accounting standards Board published a new technical bulletin on deposits and investments for certain bank holding company transactions, as well as a new interpretation on recognizing property tax revenue.
Technical Bulletin (TB) no. 97-1, Classification of Deposits and Investments into Custodial Credit Risk Categories for Certain Bank Holding Company Transactions, clarifies certain provisions of GASB Statement no. 3, Deposits with Financial Institutions, Investments (including Repurchase Agreements), and Reverse Repurchase Agreements. It explains how, depending on certain sets of circumstances, deposits and investments with bank holding companies should be classified under the custodial risk categories in Statement no. 3. It is effective for years beginning after December 15, 1997.
A defining term
In Interpretation no. 5, Property Tax Revenue Recognition in Governmental Funds, the GASB clarifies the term...