Accounting Professor Tony Billings published in CPA Journal
Mike Ilitch School of Business Professor of Accounting Tony Billings’ paper (co-authored with Jeannette A. Boles, MST, and Kyunjin/KJ Kim, MST) “The Impact and Results of New GASB 77 Disclosure Rules for Tax Abatements” has been accepted for publication in the CPA Journal.
The CPA Journal is known as the “Voice of the Profession,” and is the New York State Society of CPA’s monthly flagship publication and top member resource. An award-winning magazine and finalist for excellence in journalism (2015, 2016 FOLIO magazine awards), the journal has over 95% nationally focused content written by thought leaders in the accounting and finance industry.
In previous years, many state and local governmental units have entered into agreements with businesses that offered tax incentives to induce the establishment of new facilities (e.g., new branches, stores, headquarters, manufacturing facilities, etc.) in their jurisdictions. In exchange, businesses contributed to economic development and job creation. In an effort to make such information about tax abatement agreements transparent, the Governmental Accounting Standards Board (GASB) released Statement No. 77, Tax Abatement Disclosures (GASB Statement No. 77), on August 14, 2015. This article discusses the definition of tax abatements, the disclosure requirements of GASB Statement No. 77, the scope of GASB Statement No. 77, the consequences of GASB Statement No. 77 on state and local governmental units offering abatements, and the necessary actions required by CPAs with respect to tax abatements, along with some challenges to implementing the new standard.