A recent article published in the Journal of Accountancy, discusses GASB 77 and its new disclosures. The article discusses how many state and local government will give businesses tax breaks to ensure that the businesses locate in their territory, which in turn helps stimulates economic growth.
GASB 77 requires new government disclosures about such agreements with entities and individuals such as:
- The purchase of the tax abatement program,
- The tax being abated,
- The dollar amount of taxes abated,
- Provisions for recapturing abated taxes,
- The types of commitments made by tax abatement recipients, and
- Other commitments made by a government in tax abatement agreements, such as to build infrastructure assets.
The new standards will take affect for financial statements for periods beginning after December 15, 2015.
To read the full referenced article, click here. For more information on GASB 77, please contact Eric VanDop at (231) 726-5855.