The GASB’s New Standard for Government Combinations and Disposals of Government Operations Is Now Available

Norwalk, CT, January 22, 2013—The Governmental Accounting Standards Board (GASB) today published standards intended to improve accounting and financial reporting for U.S. state and local governments’ combinations and disposals of government operations. The pronouncement, which was approved on January 8, is available to download at no charge on the GASB website.

GASB Statement No. 69, Government Combinations and Disposals of Government Operations, provides guidance for:

• Determining whether a specific government combination is a government merger, a government acquisition, or a transfer of operations
• Using carrying values (generally, the amounts recognized in the pre-combination financial statements of the combining governments or operations) to measure the assets, deferred outflows of resources, liabilities, and deferred inflows of resources combined in a government merger or transfer of operations 
• Measuring acquired assets, deferred outflows of resources, liabilities, and deferred inflows of resources based upon their acquisition values in a government acquisition, and
• Reporting the disposal of government operations that have been transferred or sold.

A news release announcing the new standard is also available on the GASB website.

The requirements of this Statement are effective for periods beginning after December 15, 2013, and should be applied on a prospective basis. Early application of the standard is encouraged.

Bound copies of the Statement will be available for purchase on January 31 via the GASB Store.


About the Governmental Accounting Standards Board

The GASB is the independent, not-for-profit organization formed in 1984 that establishes and improves financial accounting and reporting standards for state and local governments. Its seven members are drawn from the Board’s diverse constituency, including preparers and auditors of government financial statements, users of those statements, and members of the academic community. More information about the GASB can be found at its website, www.gasb.org.