State of Louisiana DIVISION OF ADMINISTRATION Office of Statewide Reporting and Accounting Policy
M. J. "Mike" Foster, Jr. Governor		Mark C. Drennen Commisioner of Administration

MEMORANDUM SA 99-08

TO:		All Fiscal Officers
FROM:		F. Howard Karlton CPA, Director
SUBJECT:		Implementation of GASB Statement 31 - Addendum

In May 1998, you received memorandum SA 98-46 which describes your reporting requirements under the Governmental Accounting Standards Board's (GASB) Statement 31, Accounting and Financial Reporting for Certain Investments and for External Investment Pools. The provisions of this statement, effective for reporting periods beginning after June 15, 1997, will be implemented in this year's CAFR.

The standards established by GASB Statement 31 require that investments be reported at fair value on the balance sheet, and that income from these investments and increases in fair value be recognized as revenue in the statement of operations.

This memorandum is to provide direction on where income from Statement 31 implementation is to be reported in the operating statement. To provide consistency in reporting by all entities, this information should be shown as Investment Income.

Decreases in fair value of investments may also occur, and may cause negative revenue to be recognized. This will also be reported as Investment Income.

If you have questions concerning this memorandum, please call me at (504) 342-0708.

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