AgdaPkt 2017-12-18 Special Joint SA PFA

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City of Redwood City Notes to the Basic Financial Statements For the fiscal year ended June 30, 2017 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) O. Implementation of New GASB Pronouncements In FY 2016‐17 the City adopted the following new accounting standard in order to conform to the following Governmental Accounting Standards Board Statement: GASB Statement No. 74, Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans– The objective of this Statement is to improve the usefulness of information about postemployment benefits other than pensions (other postemployment benefits or OPEB) included in the general purpose external financial reports of state and local governmental OPEB plans for making decisions and assessing accountability. This Statement results from a comprehensive review of the effectiveness of existing standards of accounting and financial reporting for all postemployment benefits (pensions and OPEB) with regard to providing decision‐useful information, supporting assessments of accountability and interperiod equity, and creating additional transparency. The requirements of this statement were not applicable to the City. GASB Statement No. 77, Tax Abatement Disclosure‐ This Statement addresses the financial statements prepared by state and local governments in conformity with generally accepted accounting principles provide citizens and taxpayers, legislative and oversight bodies, municipal bond analysts, and others with information they need to evaluate the financial health of governments, make decisions, and assess accountability. This information is intended, among other things, to assist these users of financial statements in assessing (1) whether a government’s current‐year revenues were sufficient to pay for current‐year services (known as interperiod equity), (2) whether a government complied with finance‐ related legal and contractual obligations, (3) where a government’s financial resources come from and how it uses them, and (4) a government’s financial position and economic condition and how they have changed over time. There was no impact on net position as a result of implementation of this statement. GASB Statement No. 78, Pension Provided through Certain Multiple‐Employer Defined Benefit Pension Plans– The objective of this Statement is to address a practice issue regarding the scope and applicability of Statement No. 68, Accounting and Financial Reporting for Pensions. This issue is associated with pensions provided through certain multiple‐employer defined benefit pension plans and to state or local governmental employers whose employees are provided with such pensions. The requirements of this statement were not applicable to the City. GASB Statement No. 80, Blending Requirements for Certain Component Units – An Amendment of GASB Statement No. 14 ‐ The objective of this Statement is to improve financial reporting by clarifying the financial statement presentation requirements for certain component units. This Statement amends the blending requirements established in paragraph 53 of Statement No. 14, The Financial Reporting Entity, as amended. This Statement amends the blending requirements for the financial statement presentation of component units of all state and local governments. The additional criterion requires blending of a component unit incorporated as a not‐for‐profit corporation in which the primary government is the sole corporate member. The additional criterion does not apply to component units included in the financial reporting entity pursuant to the provisions of Statement No. 39, Determining Whether Certain Organizations Are Component Units. The requirements of this statement were not applicable to the City. 44 6.1.E. - Page 67