Apr 04, 2016
From the Financial Reporting Network
The GASB recently issued Statement No. 81, Irrevocable Split-Interest Agreements, which provides recognition and measurement guidance for governments that benefit from irrevocable split-interest agreements. Under a typical irrevocable split-interest agreement, a donor transfers assets to a government or a third party, such as a bank, for the shared benefit of at least two beneficiaries, one of which is a government. The Statement addresses when these types of arrangements constitute an asset for accounting and financial reporting purposes when the resources are administered by a third party. This GASB Statement also provides expanded guidance for circumstances in which the government holds the assets.
The GASB Statement is effective for financial reporting periods beginning after December 15, 2016. Earlier application is encouraged.