Page 71 - BAA CAFR 2017

BIRMINGHAM AIRPORT AUTHORITY
NOTES TO THE FINANCIAL STATEMENTS

NOTE 17 RECENTLY ISSUED ACCOUNTING STANDARDS

The GASB issued Statement No. 74, Financial Reporting for Postemployment
Benefit Plans Other Than Pension Plans-replaces Statement No. 43 and Statement
No. 57 (GASB 74). The objective of this statement is to improve financial reporting
primarily through the enhancement of note disclosures and schedules of required
supplementary information that will be presented by OPEB plans that are within its
scope. The requirements of GASB 74 are effective for fiscal years beginning after
June 15, 2016 (fiscal year 2017). The Authority implemented GASB 74 this year.

The GASB issued Statement No. 75, Accounting and Financial Reporting for
Postemployment Benefit Plans Other Than Pensions-replaces Statement No. 45
(GASB 75). This statement requires governments to report a liability on the face of
the financial statements for the OPEB that they provide. The requirements of GASB
75 are effective for fiscal years beginning after June 15, 2017 (fiscal year 2018).
The Authority is currently evaluating the impact that GASB 75 may have on its
financial statements.

The GASB issued Statement No. 83, Certain Asset Retirement Obligations (GASB
83). This statement establishes criteria for recognition of a liability and a
corresponding deferred outflow of resources and related disclosures for asset
retirement obligations (AROs). An ARO is a legally enforceable liability associated
with the future retirement of a tangible capital asset. The retirement of a tangible
capital asset encompasses its sale, abandonment, recycling, or disposal in some
other manner. The requirements of GASB 83 are effective for fiscal years beginning
after June 15, 2018 (fiscal year 2019), with earlier implementation encouraged. The
Authority is currently evaluating the impact that GASB 83 may have on its financial
statements, if any.

NOTE 18 SUBSEQUENT EVENTS

On July 17, 2017 the Authority entered into another line of credit agreement
permitting the Authority to borrow up to $4,390,175 from BBVA Compass. This
lending agreement expires on July 16, 2018.

NOTE 19 CHANGE IN ACCOUNTING PRINCIPLES/RESTATMENT

The Authority implemented GASB Statement 74, Reporting for Postemployment
Benefit Plans other than Pension Plans, in fiscal year ending June 30, 2017. The
implementation of the statement required the Authority to record beginning net
pension and effects on net position of contributions made by the Authority during
the measurement period (fiscal year ending June 30, 2016). As a result, net position
decreased by $1,529,538.

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