VSCPA Supports GASB Exposure Draft on Certain Debt Extinguishment Issues
Oct. 24, 2016
Director of Research and
Project No. 19-25E
Governmental Accounting Standards Board
401 Merritt 7, PO Box 5116
Norwalk, CT 06856-5116
Submitted via email to [email protected]
Re: Certain Debt Extinguishment Issues (Project No. 19-25E)
Dear Director of Research and Technical Activities:
The Virginia Society of CPAs’ (VSCPA) Accounting & Auditing Advisory Committee (the Committee) has reviewed the proposed Exposure Draft, Certain Debt Extinguishment Issues, issued by the Governmental Accounting Standards Board (the Board). The VSCPA is a leading professional association with more than 12,000 individual members dedicated to enhancing the success of all CPAs and their profession by communicating information and vision, promoting professionalism and advocating members’ interests. We appreciate the work the Board has undertaken on this effort, and the opportunity to respond to this Exposure Draft.
The Committee supports the Board’s objective to improve consistency in accounting and financial reporting for transactions in which only existing resources — those other than the proceeds of refunding debt — are placed in trust for the sole purpose of extinguishing debt. The Committee further supports the Board’s objective to improve accounting and financial reporting for prepaid insurance on debt that is extinguished, and notes to the financial statements for debt that is defeased in substance. Overall, we agree with the requirements of the Exposure Draft.
Again, the VSCPA Committee appreciates the opportunity to respond to this Exposure Draft.
Charles M. Valadez, CPA, CGMA, CITP
2016–2017 VSCPA Accounting & Auditing Advisory Committee
Charles Valadez, CPA — Chair
Joshua Keen, CPA — Vice Chair
Zachary Borgerding, CPA
Michael Cahill, CPA
Tamara Greear, CPA
M. James Hartson, Jr., CPA
Ashleigh Smith, CPA
Forrest Wagoner, II, CPA
Mulugeta Wondimu, CPA