Acc 380 Week 2 Assignment

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GASB Article Statement No. 49 Before diving directly into the article from the Governmental Accounting Standards Board (GASB) titled Governments to Report Liabilities Connected with Their Obligations to Clean Up Pollution (2006), one must first take a step back and take time to read, comprehend, and take to heart exactly what this organization stands for. Taken directly from their main web page under the tab labeled Education, the first thing seen in big, bold, blue letters is, “Due Process: The GASB Is Listening” followed by a definition of what listening means, “to hear with thoughtful attention”. When researching a little more into the GASB, it is easy to see how crucial listening truly is for them in order to fully accomplish their…show more content…
The $2.2 million would be reported as the liability in the government’s financial statements.”
If only certain portions can be estimated, they are reported initially and as the process is completed, costs are reevaluated and reported in their current amount under liabilities. These expenses are reported in the government-wide financial statements under liabilities, as the work is completed, the liability is reduced for the dollar amount of which payments were made. The article states, “For governments that also present financial statements for governmental funds, expenditures will be reported when clean up goods and services are received.” (para. 7). As stated earlier, a note disclosure is required for the liability, however, in the case insufficiently being able to properly foresee a reasonable estimated amount, since there are no numbers to report; but, there is still a disclosure submitted, except only “the nature of the pollution remediation activities” (para. 8) will be disclosed. For those which can project cost outlays the information required in their note is:
1) “Nature and source of the obligation to clean up the pollution”
2) The estimated liability amounts if “combined with other liabilities in the financial statements”
3) How the estimates were computed, i.e. what method and under what assumptions?
4) Changes which are expected

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