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CITY OF SAN LEANDRO <br />MEMORANDUM ON INTERNAL CONTROL <br />JUNE 30, 2012 <br /> <br />SCHEDULE OF OTHER MATTERS <br /> <br />Review Draft 6/18/2013 5:11:57 PM <br /> <br />EFFECTIVE FISCAL 2013/14: <br /> <br />GASB 65 - Items Previously Reported as Assets and Liabilities <br /> <br />This Statement establishes accounting and financial reporting standards that reclassify, as deferred <br />outflows of resources or deferred inflows of resources, certain items that were previously reported as <br />assets and liabilities and recognizes, as outflows of resources or inflows of resources, certain items that <br />were previously reported as assets and liabilities. <br /> <br />Concepts Statement No. 4, Elements of Financial Statements, introduced and defined the elements <br />included in financial statements, including deferred outflows of resources and deferred inflows of <br />resources. In addition, Concepts Statement 4 provides that reporting a deferred outflow of resources or a <br />deferred inflow of resources should be limited to those instances identified by the Board in authoritative <br />pronouncements that are established after applicable due process. Prior to the issuance of this Statement, <br />only two such pronouncements have been issued. Statement No. 53, Accounting and Financial Reporting <br />for Derivative Instruments, requires the reporting of a deferred outflow of resources or a deferred inflow <br />of resources for the changes in fair value of hedging derivative instruments, and Statement No. 60, <br />Accounting and Financial Reporting for Service Concession Arrangements, requires a deferred inflow of <br />resources to be reported by a transferor government in a qualifying service concession arrangement. This <br />Statement amends the financial statement element classification of certain items previously reported as <br />assets and liabilities to be consistent with the definitions in Concepts Statement 4. <br /> <br />This Statement also provides other financial reporting guidance related to the impact of the financial <br />statement elements deferred outflows of resources and deferred inflows of resources, such as changes in <br />the determination of the major fund calculations and limiting the use of the term deferred in financial <br />statement presentations. <br /> <br />How the Changes in This Statement Will Improve Financial Reporting <br /> <br />The requirements of this Statement will improve financial reporting by clarifying the appropriate use of <br />the financial statement elements deferred outflows of resources and deferred inflows of resources to <br />ensure consistency in financial reporting. <br />