Statement 81 The Governmental Accounting Standards Board (« GASB ») is now in effect for closing periods from December 15, 2016 (December 31, 2017 and beyond) and is expected to be applied retroactively. This statement standardizes accounting and financial reporting for government splitting interest agreements. Public universities, universities and hospitals will most likely be the beneficiaries of these gift agreements, created by trusts or other legally enforceable agreements. The provisions of this statement apply to financial statements prepared using the Economic Resource Assessment Centre and the current Financial Resource Assessment Centre. At the end of the inter-interest split agreement, an amount required to reduce all assets and liabilities related to the agreement to zero should be recorded in the list of activities as a change in the value of the split interest agreements. This amount should, if necessary, be considered unlimited, temporary or permanently limited. All distributions received in advance pursuant to the terms of the agreement and available to the non-profit organization for their full use at the end of the contract should be reclassified from net assets, temporarily limited, to unlimited net assets. The new GASB 81 standard must be implemented retroactively by reassessing the financial statements for all pre-defined periods. If you have split-interest agreements, you may need to go through some old agreements to adopt the standard retroactively. The most important thing for adoption and enforcement to be successful is to conduct an individual review of each agreement to ensure adequate accounting. A non-profit lead trust provides funds to a government in the form of regular payments for the duration of the agreement. The duration may be valid for a specified period of years or after the death of the donor (a life-related agreement). After the end of the trust, the remainder of the trust is paid to the donor or to the beneficiaries designated by the donor.
The use of the concept of liability in this issue is not whether the commitment is a liability or a form of minority participation. Two aspects of the terms of payment of the Split Interest Agreement on The Lead of Split Interest, whether fixed or variable in cash and whether a specific amount or related to life, relate to the accounting treatment of the responsibility of the NFP organization for payment or payment to the donor or the donor`s beneficiary.