GASB Statement No. 91: New Guidance on Conduit Debt

New guidance has been issued for government entities that act as conduit debt providers. GASB Statement No. 91 provides a single method of reporting conduit debt obligations and clarifies that these obligations are not government liabilities.

The statement also addresses other scenarios, such as leases, that are sometimes associated with conduit debt issuances. Additionally, the statement requires the disclosure of the outstanding principal balance of all conduit debt, along with a description of each type of conduit debt commitment (and organized by these types).

While earlier application is encouraged, GASB Statement No. 91 is effective for all reporting periods beginning after December 15, 2020. You can see the full text of the statement on Governmental Accounting Standards Board website.

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