Notes to the Financial Statements
June 30, 2009
Note 24 New Accounting Pronouncements
In fiscal year 2009, the State implemented the following Statements issued by the Governmental Accounting Standards Board: Statement No. 49, "Accounting and Financial Reporting for Pollution Remediation Obligations"; Statement No. 55, "The Hierarchy of Generally Accepted Accounting Principles for State and Local Governments"; and Statement No. 56, "Codification of Accounting and Financial Reporting Guidance Contained in the AICPA Statements on Auditing Standards".
Statement No. 49 establishes accounting and financial reporting standards for pollution remediation obligations, which are obligations to address the current or potential detrimental effects of existing pollution by participating in pollution remediation activities such as site assessments and cleanups.
Statement No. 55 incorporates the hierarchy of generally accepted accounting principles (GAAP) for state and local governments into the Governmental Accounting Standards Board's (GASB) authoritative literature. Previously, the GAAP hierarchy for state and local governments was set forth in an American Institute of Certified Public Accountants' auditing standard, rather than in GASB's authoritative literature.
Statement No. 56 incorporates into GASB's authoritative literature certain accounting and financial reporting guidance presented in American Institute of Certified Public Accountants' auditing standards. This guidance deals with financial reporting of related party transactions, going concern considerations, and subsequent events.