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Reporting Requirements for Annual Financial Reports of State Agencies and Universities

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Reporting Requirements for Annual Financial Reports of State Agencies and Universities

Notes & Samples

NOTE 6 – Bonded Indebtedness
Derivative Instruments

GASB 53 addresses the recognition, measurement and disclosure of information pertaining to derivative instruments by state and local governments. The disclosures required by TB 2003-1 were incorporated into GASB 53. This statement also modifies disclosures required by GASB 40.

GASB 53 requires governments to measure most derivative instruments at fair value in the government-wide statement of activities and statement of net position (economic resources measurement focus financial statements). If derivative instruments are recognized in the financial statements, consideration of hedge accounting is necessary.

Disclose any violations of legal, regulatory or contractual provisions as a result of holding or writing (selling) effective swap derivative instruments. For disclosures related to hedging derivative instruments, see Hedging Derivative Instruments Disclosures Overview.