The Government Accounting Standards Board (GASB) issued Statement No. 80, Blending Requirements for Certain Component Units on February 11, 2016. Statement No. 80, an amendment of GASB Statement No. 14, requires that state and local governments include in the reporting unit’s financial statements those component units organized as not-for-profit corporations in which the government is the sole corporate member.
According to the GASB Website, “The objective of this Statement is to improve financial reporting by clarifying the financial statement presentation requirements for certain component units.”
The pronouncement, which is effective for reporting periods beginning after June 15, 2016, with earlier application permitted, applies to all state and local governments.
When is Statement No. 80 eligible to be tested on the CPA Exam?
With an effective date of June 15, 2016 and an issue date of February 11, 2016, the Statement is eligible for testing on the CPA Exam in the Q4 2016 testing window.
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