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CITY OF SAN LEANDRO <br />MEMORANDUM ON INTERNAL CONTROL <br />SCHEDULE OF OTHER MATTERS <br />Upcoming Governmental Accounting Standards Board Pronouncements <br />The following comment represents new pronouncements ta king effect in the next few years. We have <br />cited them here to keep you abreast of developments: <br />Effective in fiscal year 2015-16 <br />GASB 72 -Fair Value Measurement and Application <br />This Statement addresses accounting and fmancial reporting issues related to fair value measurements. <br />The definition of /air value is the price that would be received to sell an asset or pay to transfer a liability <br />in an orderly transaction between market participants at the measurement date. This Statement provides <br />guidance for determining a fair value measurement for financial reporting purposes. This Statement also <br />provides guidance for applying fair value to certain investments and disclosures related to all fair value <br />measurements. <br />GASB 76 -Th e Hi erarchy of Generally Accepted Accounting Prin ciples (or State and Local <br />Governments <br />The objective of this Statement is to identify, in the context of the current governmental financial <br />reporting environment, the hierarchy of generally accepted accounting principles (GAAP). The "GAAP <br />hierarchy" consists of the sources of accounting principles used to prepare financial statements of state <br />and local governmental entities in conformity with GAAP and the framework for selecting those <br />principles. This Statement reduces the GAAP hierarchy to two categories of authoritative GAAP and <br />addresses the ·use of authoritative and non-authoritative literature in the event that the accounting <br />treatment for a transaction or other event is not specified within a source of authoritative GAAP. This <br />Statement supersedes Statement No. 55, The Hierarchy of Generally Accepted Accounting Principles for <br />State and Local Governments. <br />Effective in fiscal year 2016-17: <br />GASB 73 -Accounting and Fin ancial Reporting for Pensions and Related Assets That Are Not within <br />th e Scope of GASB Statement 68 <br />This Statement establishes requirements for defined benefit pensions that are not within the scope of <br />Statement No. 68, Accounting and Financial Reporting for Pensions, as well as for the assets <br />accumulated for purposes of providing those pensions. In addition, it establishes requirements for defmed <br />contribution pensions that are not within the scope of Statement 68. It also amends certain provisions of <br />Statement No. 67, Financial Reporting for Pension Plans, and Statement 68 for pension plans and <br />pensions that are within their respective scopes. <br />4