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Report from GASB

In May, the Governmental Accounting Standards Board (GASB) met once by teleconference and once in a regular meeting. The board used both occasions to discuss issues arising from projects on its technical agenda.

Derivatives

The board reviewed a preballot draft of a final statement on Accounting and Financial Reporting/or Derivative Instruments. In the case of hybrid instruments (i.e., an instrument that consists of both a derivative and a companion instrument), the board decided that the provisions of the derivatives standard should apply if the components are not closely related (with criteria for making this determination to be provided in the final standard).

The board agreed as well ...

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