Notes to the Financial Statements
June 30, 2010
Note 25 New Accounting Pronouncements
In fiscal year 2010, the State implemented the following Statements issued by the Governmental Accounting Standards Board: Statement No. 51, “Accounting and Financial Reporting for Intangible Assets”; and Statement No. 53, “Accounting and Financial Reporting for Derivative Instruments”.
Statement No. 51 establishes standards of accounting and financial reporting standards for intangible assets, which are assets that lack physical substance, are nonfinancial in nature, and have initial useful life extending beyond a single reporting period.
Statement No. 53 addresses the recognition, measurement, and disclosure of information regarding derivative instruments, which are complex financial arrangements used by governments to manage specific risks or to make investments. For example, interest rate swaps, options, forward contracts, etc.