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By Joseph Wicklund, CPA

At PICPA’s June 2025 School District Conference, the Governmental Accounting Standards Board (GASB) will provide an update in two parts. The first will be a discussion of GASB statements out for implementation; the second will be an update on current technical agenda projects.

Implementations

The GASB has four statements out for implementation:

• Statement No. 101, Compensated Absences
• Statement No. 102, Certain Risk Disclosures
• Statement No. 103, Financial Reporting Model Improvements
• Statement No. 104, Disclosure of Certain Capital Assets

Statement 101 – This statement standardizes the recognition and measurement of liabilities for compensated absences, requiring governments to recognize liabilities for leave that is attributable to services already rendered, accumulates, and is more likely than not to be used for time off or otherwise paid or settled. These include paid leave benefits provided by governments, such as vacation, sick leave, and paid time off, with exceptions for certain types of leave, such as parental and military leave (for which a liability would not be recognized until the leave commences). The requirements of Statement 101 are effective for fiscal years beginning after Dec. 15, 2023, and all reporting periods thereafter. Earlier application is encouraged.

Statement 102 – Concentrations and constraints may limit a government’s ability to acquire resources or control spending, so this statement requires governments to disclose information about risks related to the vulnerabilities due to certain concentrations or constraints. Concentrations are defined as a lack of diversity related to a significant inflow or outflow of resources (such as a small number of companies representing a majority of employment in a government’s jurisdiction); constraints are defined as limitations imposed on a government by an external party or by formal action of the government’s highest level of decision-making authority (such as a voter-approved property tax cap). Disclosure would be required when a concentration or constraint is known to the government prior to issuing its financial statements, that concentration or constraint makes the government vulnerable to a substantial impact, and an event or events associated with the concentration or constraint that could cause a substantial impact have occurred, have begun to occur, or are more likely than not to begin to occur within 12 months of the date financial statements are issued. The requirements of Statement 102 are effective for fiscal years beginning after June 15, 2024, and earlier application is encouraged.

Statement 103 – This statement builds on the guidance provided in Statement No. 34, Basic Financial Statements—and Management’s Discussion and Analysis—for State and Local Governments, which was issued in 1999. The new statement provides key targeted improvements to the financial reporting model that establish or modify existing requirements related to management’s discussion and analysis, unusual or infrequent items (previously extraordinary and special items), presentation of the proprietary fund statement of revenues, expenses, and changes in fund net position, major component unit information, and budgetary comparison information. The requirements of Statement 103 are effective for fiscal years beginning after June 15, 2025, and all reporting periods thereafter. Earlier application is encouraged.

Statement 104 – This statement establishes requirements for certain types of capital assets to be disclosed separately for the purposes of note disclosures, as well as other requirements for capital assets held for sale. It addresses four types of capital assets that would be disclosed separately in notes:

• Lease assets reported under Statement No. 87, Leases, by major class of underlying asset.
• Intangible right-to-use assets recognized by an operator under Statement No. 94, Public-Private and Public-Public Partnerships and Availability Payment Arrangements, by major class of underlying asset.
• Subscription assets reported under Statement No. 96, Subscription-Based Information Technology Arrangements.
• Intangible assets other than those listed above, by major class of asset.

Also under the guidance, a capital asset is a capital asset held for sale if the government has decided to pursue the sale of the asset and it is probable the sale will be finalized within a year of the financial statement date. A government should disclose the historical cost and accumulated depreciation of capital assets held for sale, by major class of asset. The requirements of Statement 104 are effective for fiscal years beginning after June 15, 2025, and all reporting periods thereafter. Earlier application is encouraged.

Technical Agenda

The GASB’s technical plan is updated three times per year and provides information on current standard-setting projects and the pre-agenda research efforts of the organization. Projects on the GASB’s technical agenda include the following:

• Severe Financial Stress and Probable Dissolution Disclosures (A Preliminary Views for public comment was issued in March 2025)
• Implementation Guidance Update – 2025
• Infrastructure Assets
• Revenue and Expense Recognition
• Subsequent Events
• Cybersecurity Risk Disclosures (pre-agenda research)
• GAAP Structure (pre-agenda research)
• Revenue and Expense Recognition – Note Disclosures (pre-agenda research)
• Post-Implementation Reviews of Statements 75, 84, and 87
• Voluntary Digital Financial Reporting

Additional information about GASB standards and projects can be found at www.gasb.org.

To hear more from Joseph Wicklund and gain insight into the latest efforts at the GASB, be sure to attend PICPA’s School District Conference webcast on June 5. You will also hear from auditors and other financial professionals as they discuss the complex world of school district finance.

Joseph Wicklund, CPA, is a project manager with the Governmental Accounting Standards Board in Norwalk, Conn. His current projects include Infrastructure Assets, Subsequent Events, GAAP Utilization research, Cybersecurity Risk Disclosures research, and the Post-Implementation Review of Statement 87. He can be reached at jwicklund@gasb.org.

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^{Statements of fact and opinion are the authors’ responsibility alone and do not imply an opinion on the part of the PICPA's officers or members. The information contained herein does not constitute accounting, legal, or professional advice. For actionable advice, you must engage or consult with a qualified professional.}