GASB Proposes to Postpone Effective Dates of Certain Pronouncements Due to COVID-19

On April 15, 2020, the Governmental Accounting Standards Board (GASB) proposed to postpone the effective dates of a significant number of the upcoming GASB statements and implementation guides, which were previously due to be implemented by state and local government units for fiscal years 2019 and later.

The GASB is working to provide relief to governments in light of the COVID-19 pandemic. The proposal would postpone by one year the effective dates, as defined in the respective statement/implementation guide, in the following pronouncements:

• Statement No. 83, Certain Asset Retirement Obligations
• Statement No. 84, Fiduciary Activities
• Statement No. 87, Leases
• Statement No. 88, Certain Disclosures Related to Debt, including Direct Borrowings and Direct Placements
• Statement No. 89, Accounting for Interest Cost Incurred before the End of a Construction Period
• Statement No. 90, Majority Equity Interests
• Statement No. 91, Conduit Debt Obligations
• Statement No. 92, Omnibus 2020, paragraphs 6–10 and 12
• Statement No. 93, Replacement of Interbank Offered Rates, paragraphs 13 and 14
• Implementation Guide No. 2017-3, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions (and Certain Issues Related to OPEB Plan Reporting), Questions 4.85, 4.103, 4.108, 4.109, 4.225, 4.239, 4.244, 4.245, 4.484, 4.491, and 5.1–5.4
• Implementation Guide No. 2018-1, Implementation Guidance Update—2018
• Implementation Guide No. 2019-1, Implementation Guidance Update—2019
• Implementation Guide No. 2019-2, Fiduciary Activities
• Implementation Guide No. 2019-3, Leases

It is important to note that GASB did not propose postponing the other provisions of Statement No. 93 or Statement No. 94, Public-Private and Public-Public Partnerships and Availability Payment Arrangements, because the GASB noted that the pandemic was factored into the establishment of the effective dates for those pronouncements.

The GASB is working under an expedited schedule to issue this guidance as quickly as practicable. The exposure draft has a comment period deadline of April 30, 2020, and is available on the GASB website. The GASB is scheduled to review stakeholder feedback and consider a final statement for issuance on May 8.

Visit the KSM COVID-19 Resource Center