The Metropolitan Community College Notes to Financial Statements June 30, 2016 and 2015
(College’s June 30, 2018 fiscal year). The effect of this Statement to the College has not yet been determined. In August 2015, GASB issued GASB Statement No. 77, Tax Abatement Disclosures, which intends to provide financial statement users with essential information about the nature and magnitude of the reduction in tax revenues through tax abatement programs. The College has determined adoption of this Statement will have no effect on its financial statements. In December 2015, GASB issued GASB Statement No. 78, Pensions Provided through Certain Multiple-employer Defined Benefit Pension Plans, which amends the scope of Statement No. 68, Accounting and Financial Reporting for Pensions. The scope was amended to exclude pensions provided to employees of state or local governmental employers through a cost-sharing multiple-employer defined benefit pension plan that is not a state or local government pension plan. The College has determined adoption of this Statement will have no effect on its financial statements. In January 2016, GASB issued GASB Statement No. 80, Blending Requirements for Certain Component Units, which intends to improve financial reporting by clarifying the financial statement presentation requirements for certain component units. The College has not yet determined the effect that implementing GASB Statement No. 80 will have on its financial statements. In March 2016, GASB issued GASB Statement No. 81, Irrevocable Split-Interest Agreements, which intends to improve accounting and financial reporting for irrevocable split-interest agreements by providing recognition and measurement guidance for beneficiaries of these type of agreements. The College has not yet determined the effect that implementing GASB Statement No. 81 will have on its financial statements. In March 2016, GASB issued GASB Statement No. 82, Pension Issues – an Amendment of GASB Statements No. 67, No. 68 and No. 73, which addresses certain issues with regard to current GASB standards on pensions. The College has not yet determined the effect that implementing GASB Statement No. 82 will have on its financial statements.
Note 12: Disclosure About Fair Value of Assets Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurements must maximize the use of observable inputs and minimize the use of unobservable inputs. There is a hierarchy of three levels of inputs that may be used to measure fair value: Level 1
Quoted prices in active markets for identical assets or liabilities
Level 2
Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities 54