Focus Area: Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Position
GASB 63 Effective for FY 2013
March 1, 2013
In June 2011, the Governmental Accounting Standards Board (GASB) issued Statement No. 63, Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Position (GASB 63). GASB 63 standardizes the presentation of deferred outflows and deferred inflows. To help explain the changes that result from the implementation of GASB 63, a brief overview is included below, with additional resources attached.
GASB 63 is effective for fiscal year 2013 and changes the CAFR reporting format for proprietary funds, including colleges and universities, and fiduciary funds. The OSC financial reporting team is in the process of updating the DSS reports and financial statement templates for 2013 CAFR reporting. The updated reports and templates will be ready in April when the year-end CAFR packages are published on the OSC website.
Here is a summary of the changes:
- Net assets are being replaced with Net position. The statewide chart of accounts is being updated to reflect changes to the net asset accounts and also the existing deferred outflow and deferred inflow accounts. See Attachment A below.
- The Statement of Net Assets for proprietary funds (DSS CAFR11P) is being converted to the Statement of Net Position by adding two new sections for deferred outflows and deferred inflows, converting the net assets section to net position and renaming “Investment in capital assets, net of related debt” to “Net investment in capital assets” in accordance with the guidance in GASB 63. See Attachment B below.
- The distinction between current/noncurrent is not applicable to deferred outflows of resources and deferred inflows of resources. Therefore, deferred outflows of resources and deferred inflows of resources are reported in separate sections following assets and liabilities, respectively. The corresponding changes are also being made to the templates in the CAFR package for proprietary funds including universities and other component units, and to the financial statements in the community college CAFR package as well.
- The Statement of Fiduciary Net Assets is being changed to the Statement of Fiduciary Net Position for the DSS CAFR11F and the corresponding worksheet 906 in the CAFR package.
- The operating statements for the proprietary and fiduciary funds are being updated accordingly with net position in place of net assets.
- Disclosure in the notes to the financial statements may be required per GASB 63 paragraphs 13 and
14. At this time, we do not anticipate disclosures being needed for the State’s CAFR. However agencies that have individually issued financial statements will need to consider whether disclosures are required.
To gain additional understanding of GASB 63, please refer to the following resources:
- OSC-prepared slides on GASB 63 – See Attachment C below.
- GASB plain-language article on Concepts Statement 4 – Defining the Fundamental Elements of Financial Reporting
- The GASB webpage from which you may access a PDF file of GASB 63 as well other GASB pronouncements – GASB Pronouncements
Thank you for your time and attention to this important change. For questions or concerns, please contact Debbie Dryer at (919) 707-0528, Debbie.Dryer@ncosc.gov or Helen Vozzo at (919) 707-0529, Helen.Vozzo@ncosc.gov.