Sep 06, 2016
From the Financial Reporting Network
The GASB recently issued an Exposure Draft, Certain Debt Extinguishment Issues, which proposes accounting and financial reporting guidance for transactions in which only existing resources are placed in a trust for the purpose of extinguishing debt, and prepaid insurance associated with debt that is extinguished. The Exposure Draft also proposes an additional disclosure requirement related to debt that is defeased in substance.
The proposal would be effective for reporting periods beginning after June 15, 2017. Earlier application would be permitted. The comment period ends October 28.