The Governmental Accounting Standards Board has proposed a new standard that would clarify accounting for sales and pledges of receivables and future revenues, including those arising from tobacco settlement agreements.The proposal addresses whether certain transactions should be regarded as collateralized borrowing, or as a sale.

According to GASB senior technical advisor Ken Schermann, determining the difference isn't hard once guidance has been established.

Register or login for access to this item and much more

All Accounting Today content is archived after seven days.

Community members receive:
  • All recent and archived articles
  • Conference offers and updates
  • A full menu of enewsletter options
  • Web seminars, white papers, ebooks

Don't have an account? Register for Free Unlimited Access