A new look: new Elements in GASB Financial Statements.

• Author: Caporicci, Gary M.
• Position: Gov'taccounting

this article is intended to aid government officials and practitioners in the implementation of the following pronouncements issued by the Governmental Accounting Standards Board (GASB):

* Concepts Statement No. 4, Elements if Financial Statements

* Statement No. 63, Financial Reporting of Deferred Outflows of Resources, Deferred Outflows of Resources, and Net Position

In June 2007, GASB completed Concepts Statement No. 4, Elements of Financial Statements, which discussed, explained and concluded about the elements of financial statements. In 2011, GASB issued Statement No. 63, Financial Reporting of Deferred out Flows of Resources, Deferred In Flows of Resources; and Net Position. This article presents the requirements and implementation of GASB Statement No. 63.

Concepts Statement No. 4

This Concepts Statement is one or a series that has been issued, or will be issued. intended to provide a conceptual framework of inter-related objectives and Fundamental concepts that can be used as a basis for establishing consistent Financial reporting standards.

Concepts statements identify the objective and fundamental principles of financial reporting that can be applied to address numerous financial accounting and reporting issues. They provide GASB with the basic conceptual foundation for considering the merits of alternative approaches to financial reporting and help develop well-reasoned financial reporting. standards.

Concepts Statement No. 4 established definitions for seven elements--or Fundamental components of financial statements of state and local governments. The elements of a statement or financial position are defined as:

* Assets: Resources with present service capacity that the government presently controls.

* Deferred Outflows of Resources:

Consumption of net assets by the government that is applicable to a future reporting, period. Has a positive effect on net position similar to assets.

* Liabilities: Present obligations to sacrifice resources that the government has little or no discretion to avoid.

* Deferred Inflows of Resources: Acquisition of nil assets by the government that is applicable to a (inure reporting. period. Has a negative (-Get on net position similar to liabilities.

* Net Position: Residual of all elements presented in a statement of financial position (assets plus deferred outflows minus liabilities and deferred outflows equals net position)

The elements of the resource flows statements are defined as:

* Outflow...