Swap Monitoring :: Disclosure Requirements

The Government Accounting Standards Board (GASB) currently requires that information regarding derivatives be disclosed in the notes to the financial statements for all issuers who enter into derivative transactions. CDR has considerable experience drafting financial disclosure for clients pursuant to the GASB technical bulletin No. 2003-1, covering objective, significant terms, fair market value and risks.

On June 30, 2008, the GASB issued a final derivative instruments standard, Statement No. 53, Accounting and Reporting for Derivative Instruments. Disclosure changes and requirements would be effective for financial statements for periods beginning after June 15, 2009. CDR would be active in assisting with the implementation of new accounting and financial reporting standards, including assisting with the increased disclosure requirements, and determining whether a derivative qualifies as a hedging derivative under the various allowable methods to defer accumulated year-to-year gains and losses, or whether the fair market value will be reported in the financial statements (and year-to-year changes recognized as investment income).