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CITY OF PARIS, TEXAS <br />Notes to Financial Statements (Continued) <br />September 30, 2022 <br />L Summary of Significant Accounting Policies (Continued) <br />J. Recent Accounting Pronouncements Adopted (Continued) <br />applicable: (1) pension (and other employee benefit) trust funds, (2) investment trust funds, (3) private - <br />purpose trust funds, and (4) custodial funds. In the current year, this resulted in the addition of a custodial <br />fund for the quarterly municipal court fees due to the State of Texas. In the prior year, the quarterly <br />municipal court fees due to the State of Texas were reported as assets and liabilities in the General Fund. <br />As assets equaled liabilities, the requirement to report as custodial fund had no impact on beginning net <br />position. Additionally, the adoption of this statement resulted in a reclassification of certain fund types <br />from fiduciary to governmental. The reclassification of funds resulted in $24,883 of net position being <br />reclassified to fiduciary funds from governmental funds. <br />During fiscal year 2022, the City adopted the following Governmental Accounting Standards Board <br />(GASB) Statements: <br />In June 2017, the GASB issued Statement No. 87 Leases. The objective of this statement is to better meet <br />the information needs of financial statement users by improving accounting and financial reporting for <br />leases by governments. This statement increases the usefulness of government's financial statements by <br />requiring recognition of certain leases assets and liabilities for leases that previously were classified as <br />operating leases and recognized as inflows of resources or outflows of resources based on the payment <br />provision of the contract. It establishes a single model for lease accounting based on the foundational <br />principle that leases are financings of the right to use an underlying asset. Under this statement, a lessor is <br />required to recognize a lease receivable and a deferred inflow of resources, thereby enhancing the relevance <br />and consistency of information about government's leasing activities. The requirements of this statement <br />are effective for reporting periods beginning after December 15, 2019. GASB 95 postponed the effective <br />date 18 months. The City implemented this Statement in fiscal year 2022. There was no effect on net <br />position as a result of this implementation. <br />K. Future Adoption of Accounting Pronouncements <br />The GASB has issued the following potentially significant statements which the City has not yet adopted, <br />and which require adoption subsequent to September 30, 2022. <br />Statement <br />No. <br />91 <br />Conduit Debt Obligations <br />94 <br />Public -Private and Public -Public <br />Partnerships and Availability Payment <br />Arrangements <br />96 <br />Subscription -Based Information <br />Technology Arrangements <br />99 <br />Omnibus 2022 <br />100 <br />Accounting Changes and Error <br />Corrections an Amendment of GASB <br />Statement No. 62 <br />101 <br />Compensated Absences <br />40 <br />Adoption Required <br />September 30, 2023 <br />September 30, 2023 <br />September 30, 2023 <br />September 30, 2023 <br />September 30, 2024 <br />September 30, 2025 <br />