![]() ![]() Governmental external investment pools that are 2a7-like pools are permitted to report their investments at amortized cost. It also provides reporting standards when income from investments associated with one fund is assigned to another fund. For internal and external investment pools, this Statement requires the equity position of each fund and component unit of the reporting entity that sponsors the pool to be reported as assets in those funds and component units. This Statement also provides guidance for reporting the fair value of investments in open-end mutual funds and external investment pools.Īll investment income, including changes in the fair value of investments, should be reported as revenue in the operating statement (or other statement of activities). For that purpose, a pool's short-term investments are those with remaining maturities of up to ninety days. External investment pools are permitted to report short-term debt investments at amortized cost, provided that the fair value of those investments is not significantly affected by the impairment of the credit standing of the issuer, or other factors. However, governmental entities other than external investment pools are permitted to report certain money market investments at amortized cost, provided that the investment has a remaining maturity of one year or less at time of purchase. Fair value is the amount at which a financial instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. Governmental entities, including governmental external investment pools, should report investments at fair value in the balance sheet (or other statement of financial position). For defined benefit pension plans and Internal Revenue Code Section 457 deferred compensation plans, this Statement provides guidance for applying fair value to certain investment transactions. They participate because they are negotiable or transferable, or their redemption value considers market rates. Participating investment contracts are investments whose value is affected by market (interest rate) changes. For most other governmental entities, it establishes fair value standards for investments in (a) participating interest-earning investment contracts, (b) external investment pools, (c) open-end mutual funds, (d) debt securities, and (e) equity securities, option contracts, stock warrants, and stock rights that have readily determinable fair values. This Statement establishes accounting and financial reporting standards for all investments held by governmental external investment pools. 31Īccounting and Financial Reporting for Certain Investments and for External Investment Pools This would impact lease classification and the amount recognized for the lease liability and right-of-use asset at lease commencement.Summaries / Status Summary of Statement No. ![]() We believe a lessee should estimate the timing of the maximum contractual incentive not yet received and record it as a negative lease payment. Accordingly, we believe the lessee should treat the incentive in this scenario as an "in substance fixed payment" from the lessor to the lessee. Although the amount and timing of the incentive paid to the lessee could vary after lease commencement, it is generally very unlikely that a lessee would forgo any incentive it negotiated to receive from the lessor. The amount and timing of the incentive may depend on the pace at which the lessee furnishes or improves the leased asset. Often, incentives are negotiated to reimburse the lessee for amounts spent by the lessee to furnish or improve the leased property, up to a maximum negotiated amount. For example, incentive amounts may be fixed or variable subject to a cap they may be paid to the lessee upfront or over time. Lease incentives for a lessee may be structured in different ways. Transfers and servicing of financial assets Revenue from contracts with customers (ASC 606) Loans and investments (post ASU 2016-13 and ASC 326) ![]() Investments in debt and equity securities (pre ASU 2016-13) Insurance contracts for insurance entities (pre ASU 2018-12) Insurance contracts for insurance entities (post ASU 2018-12) IFRS and US GAAP: Similarities and differences Business combinations and noncontrolling interestsĮquity method investments and joint ventures ![]()
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