The Governmental Accounting Standards Board recently issued Statement No. 59, Financial Instruments Omnibus. The Statement clarifies existing standards regarding financial reporting of certain financial instruments and external investment pools. The new guidance addresses significant practice issues that have arisen when accounting for financial instruments by:
- Emphasizing the applicability of SEC requirements to certain external investment pools (known as 2a7-like pools) to provide users more consistent information on qualifying pools;
- Addressing the applicability of Statement No. 53, Accounting and Financial Reporting for Derivative Instruments, to certain financial instruments to clarify which financial instruments are within the scope of that pronouncement and to provide greater consistency in financial reporting; and
- Appling the reporting provisions for interest-earning investment contracts of Statement No. 31, Accounting and Financial Reporting for Certain Investments and for External Investment Pools, to unallocated insurance contracts to improve the consistency of reporting by pension and OPEB plans.
Statement No. 59 is effective for financial statements prepared by state and local governments for periods beginning after June 15, 2010, with earlier application encouraged. |
