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Update Debt Disclosures in Compliance with GASB-88

AAFCPAs would like to remind clients and friends that, in April 2018 the Government Accounting Standards Board (GASB) issued Statement No. 88, Certain Disclosures Related to Debt, including Direct Borrowings and Direct Placements. This standard is applicable for entities following governmental accounting standards, including AAFCPAs’ Charter School clients in Massachusetts and New Jersey, as well as other quasi-governmental organizations. The standard is applicable for reporting periods beginning after June 15, 2018 (fiscal years ending June 30, 2019).
The guidance defines debt for financial reporting purposes to clarify which transactions—including direct borrowings—are considered debt (and distinguishes debt from other long-term liabilities). The Statement also features additional disclosure requirements designed to provide information financial statement users need, including:

  • Amount of unused lines of credit
  • Assets pledged as collateral for debt
  • Significant events of default or termination events as specified in the debt agreement and their significant finance-related effect, and
  • Subjective acceleration clauses.

Additionally, the standard requires the information in debt disclosures for a direct borrowing or direct placement of debt to be separate from all other debt.
AAFCPAs advises clients to review GASB 88 and ensure note disclosures comply with the new requirements.
If you have any questions, please contact: Jeanie Gorlovsky-Schepp, CPA at, 774.512.4000; John Buckley, CPA, CGMA at, 774.512.4039; or your AAFCPAs Partner.

About the Authors

Jeanie Gorlovsky-Schepp CPA
Jeanie has extensive experience providing assurance, tax and consulting solutions for regional, national and international nonprofits, including: arts and cultural organizations, charter schools and Charter Management Organizations (CMOs), and multi-service human & social service providers. Jeanie is a leader in AAFCPAs’ Nonprofit Tax practice, and her advice helps clients navigate complex issues such as unrelated business income tax (UBIT), state filing requirements, related-party transactions and executive compensation disclosures. She leads training programs for internal team members, clients, and regional & national industry associations on various topics, including: strategic budgeting, Form 990 reporting and tax-exempt status. Most recently, she has happily shared her expertise as a guest speaker of the Massachusetts Nonprofit Network, and the Massachusetts Council of Human Service Providers, Inc. (The Providers' Council).
John Buckley CPA
John has been successfully serving AAF clients for over 20 years. He has extensive experience with the audits of diverse associations, educational institutions, and other community-based agencies. John specializes in working with nonprofit organizations that are subject to federal, state, and other regulatory requirements. John is AAF’s Educational Services Division Leader, which includes services to independent schools, charter schools and Charter Management Organizations (CMOs), colleges, education services organizations, Chapter 766 schools, and other educational institutions. He has extensive experience with these types of organizations, including working with capital campaigns, financing agreements, and charter school replication.