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.
All content provided in this article is for informational purposes only. Matters discussed in this article are subject to change. For up-to-date information on this subject please contact a James Moore professional. James Moore will not be held responsible for any claim, loss, damage or inconvenience caused as a result of any information within these pages or any information accessed through this site.