Summary of Statement No. 36

Statement No. 36
Recipient Reporting for Certain Shared Nonexchange Revenues—an amendment of GASB Statement No. 33
(Issued 4/00)

This Statement provides symmetrical accounting treatment for certain shared revenues by superseding paragraph 28 of GASB Statement No. 33, Accounting and Financial Reporting for Nonexchange Transactions. Statement 33 requires governments that share portions of their derived tax or imposed nonexchange revenues to account for the sharing as a voluntary or government-mandated nonexchange transaction, as appropriate. However, paragraph 28 of that Statement required governments that receive those shared portions to account for the sharing as a derived tax or imposed nonexchange transaction-that is, differently than the provider government. As a result, in certain circumstances, the provider and recipient governments would recognize the sharing of revenues at different times. This Statement eliminates that timing difference by requiring recipient governments to account for the sharing of revenues in the same manner as provider governments.

Additionally, this Statement removes the prior guidance in paragraph 28 that required recipient governments to accrue revenues equal to cash received if notification of the amount was not available in a timely manner. This Statement allows other estimation methods by requiring recipient governments to use a reasonable estimate of the amount to be accrued.

Unless otherwise specified, pronouncements of the GASB apply to financial reports of all state and local governmental entities, including general purpose governments, public benefit corporations and authorities, and public employee retirement systems, utilities, hospitals and other healthcare providers, and colleges and universities. Paragraph 2 discusses the applicability of this Statement.