October 2024 Newsletter
October 31, 2024
October was a significant month for the GASB and FASB, with both boards advancing initiatives that affect financial reporting standards for government entities and private companies. GASB released a Preliminary Views (PV) document titled Infrastructure Assets, inviting public input on enhancing transparency around asset condition and maintenance. GASB also issued Statement No. 104, which mandates detailed disclosures for capital assets, including lease and subscription assets, and addresses new “right-to-use” asset types. On the FASB front, an October 16 meeting covered recommendations to present contract assets and liabilities on a gross basis and proposed simplifications for credit loss reporting, particularly for private companies and non-profits. Additionally, FASB added new members to its Investor Advisory Committee to bolster its advisory capabilities.
Newsletter October 2024
Happy Fall! October has proven to be an interesting month for the GASB and the FASB in particular, where they both made progress on various of initiatives that impact financial reporting standards for government entities and private companies alike.

On October 10, GASB released a Preliminary Views (PV) document for public input on improving financial reporting standards for infrastructure assets. This PV, titled Infrastructure Assets, aims to enhance transparency around asset condition and maintenance practices by proposing changes in recognition, measurement, and disclosure requirements. If approved, the PV would define infrastructure assets as long-lasting, stationary components that deliver public services—such as roads and bridges—and require routine upkeep. It maintains that governments using historical cost for asset valuation must periodically review useful lives and salvage values, and it proposes new disclosures to capture maintenance expenses and asset aging metrics. Public comments are open until January 17, 2025, and a series of hearings and forums will allow stakeholders to provide further feedback.

Following this, on October 17, GASB issued Statement No. 104, Disclosure of Certain Capital Assets. This new guidance requires more detailed note disclosures for certain capital assets, including lease and subscription assets, and introduces requirements for assets held for sale. In particular, the statement addresses new types of “right-to-use” assets introduced by recent GASB pronouncements, and it mandates that capital assets held for sale be disclosed by their historical cost and accumulated depreciation if a sale is expected within a year. Statement 104 will take effect for fiscal years starting after June 15, 2025, with earlier application encouraged.

Meanwhile, on October 16, FASB’s Board Meeting covered key decisions on financial presentation and credit losses. Addressing private company construction contracts, the Board endorsed the Private Company Council’s (PCC’s) recommendation to allow contract assets and liabilities to be presented on a gross basis, with a full retrospective transition required for companies choosing this alternative. In addition, FASB discussed simplifying credit loss reporting under Topic 606 for private companies and non-profits, allowing these entities to opt for a practical expedient that considers current economic conditions without adjustments to historical loss data. This approach aims to ease the reporting burden while ensuring timely disclosure. Drafts of these proposed updates are in progress, and FASB has set a 45-day public comment period for additional stakeholder feedback.

To round out the month, on October 21, FASB welcomed Alex Barros of Nippon Life Global Investors Americas and Clinton Chang of Morgan Stanley to its Investor Advisory Committee (IAC), strengthening its advisory team with deep financial expertise.

Jaclyn Veno CPA | Auditing Level Training | CPE

Melisa Galasso, CPA, CSP, CPTD

Melisa F. Galasso is the founder and CEO of Galasso Learning Solutions LLC. A CPA with nearly 20 years of experience in the accounting profession, Melisa designs and facilitates courses in advanced technical accounting and auditing topics, including not-for-profit and governmental accounting.

Her passion is providing high-quality CPE that is meaningful, creates efficiencies and improves quality, and positively impacts ROI. She also supports essential professional development, audit level training, and train the trainer efforts.

Melisa is a Certified Speaking Professional, a Certified Professional in Talent Development (CPTD), and has earned the Association for Talent Development Master Trainer™ designation. Her passion for instructional design and adult learning techniques is one of the differentiators that set her apart from other CPE providers.

She also serves on the FASB’s Not-for-Profit Advisory Committee (NAC), AICPA Council, and the AICPA’s Women’s Initiative Executive Committee (WIEC). She also serves as a Subject Matter Expert for the Center for Plain English Accounting. She previously served on the AICPA’s Technical Issues Committee (TIC), the VSCPA’s Board of Directors, and is a past Chair of the NCACPA’s A&A committee. In addition, Melisa is the author of Money Matters for Nonprofits: How Board Members Can Harness the Power of Financial Statements by Understanding Basic Accounting which is available on Amazon or anywhere you purchase books online.

Melisa received a Top 50 Women in Accounting Award in 2021 by Ignition, is a 2020 Enterprising Women of the Year Award recipient, and was honored as a “40 under 40” by CPA Practice Advisor in 2017, 2018, and 2019. She was also named the 2019 Rising Star by her regional NAWBO chapter, received the Don Farmer award for achievement in technical content instruction, and earned several other awards for public speaking and technical training.