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Glenn Hegar  ·  Texas Comptroller of Public Accounts

Reporting Requirements for Annual Financial Reports of State Agencies and Universities

General Accounting

Government-wide Financial Statements
Statement of Net Position

The statement of net position reports the following elements of financial statements:

  • Assets
  • Deferred outflows of resources
  • Liabilities
  • Deferred inflows of resources
  • Net position

GASB Concepts Statement No. 4 defines deferred outflows of resources, deferred inflows of resources and net position. It also separates deferred outflows of resources and deferred inflows of resources from assets and liabilities.

Financial Statement Presentation

On a statement of financial position, present both of the following:

  • Deferred outflows of resources in a separate section following assets
  • Deferred inflows of resources in a separate section following liabilities

Present the statement of net position in the following format:

Assets + deferred outflows of resources – liabilities – deferred inflows of resources = net position

There are three components of net position:

  • Net investment in capital assets
  • Restricted (should display the major categories of restrictions)
  • Unrestricted

Net Investment in Capital Assets Component of Net Position

The net investment in capital assets component includes:

  • Capital assets less accumulated depreciation and outstanding balances of bonds, mortgages, notes or other borrowings attributable to the acquisition, construction, or improvement of those assets.
  • Deferred outflows of resources and deferred inflows of resources attributable to the acquisition, construction, or improvement of those assets, or related debt.

Restricted Net Position

Restricted net position consists of restricted assets less liabilities and deferred inflows of resources related to those assets.

Unrestricted Net Position

Unrestricted net position is the residual amount of the net position not included in the net investment in capital assets or the restricted net position.

Retroactive Reporting Requirements

Apply accounting changes made to conform to GASB 63 retroactively by reclassifying the statement of net position and balance sheet information, if practical, for all prior periods presented.

In the implementation year, disclose the nature and the effect of any reclassification. Also, explain the reason for not reclassifying the statement of net position and balance sheet information for prior periods presented.

Glenn Hegar
Texas Comptroller of Public Accounts
Questions? Contact statewide.accounting@cpa.texas.gov
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