Page 68 - Hudson CAFR Report 2018

HUDSON CITY SCHOOL DISTRICT
SUMMIT COUNTY, OHIO

NOTES TO THE BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2018

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - (Continued)

For advance refundings resulting in the defeasance of debt, the difference between the reacquisition
price and the net carrying amount of the old debt is deferred and amortized as component of interest
expense. This accounting gain or loss is amortized over the remaining life of the old debt or the life of
the new debt, whichever is shorter and is presented as a deferred outflow of resources on the statement
of net position.

A reconciliation between the bonds face value and the amount reported on the statement of net position
is presented in Note 8.

S. Pensions/Other Postemployment Benefits (OPEB)

For purposes of measuring the net pension/OPEB liability, information about the fiduciary net position
of the pension/OPEB plans and additions to/deductions from their fiduciary net position have been
determined on the same basis as they are reported by the pension/OPEB plan. For this purpose, benefit
payments (including refunds of employee contributions) are recognized when due and payable in
accordance with the benefit terms. The pension/OPEB plans report investments at fair value.

T. Extraordinary and Special Items

Extraordinary items are transactions or events that are both unusual in nature and infrequent in
occurrence. Special items are transactions or events that are within the control of the Board of
Education and that are either unusual in nature or infrequent in occurrence. Neither type of transaction
occurred during fiscal year 2018.

U. Fair Value

The District categorizes its fair value measurements within the fair value hierarchy established by
generally accepted accounting principles. The hierarchy is based on the valuation inputs used to
measure the fair value of the asset. Level 1 inputs are quoted prices in active markets for identical
assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant
unobservable inputs.

NOTE 2 - ACCOUNTABILITY AND COMPLIANCE

A. Change in Accounting Principles/Restatement of Net Position

For fiscal year 2018, the District has implemented GASB Statement No. 75, “Accounting and
Financial Reporting for Postemployment Benefits Other Than Pension”, GASB Statement No. 81
“Irrevocable Split-Interest Agreements” GASB Statement No. 85, “Omnibus 2017” and GASB
Statement No. 86, “Certain Debt Extinguishments”.

GASB Statement No. 75 improves the accounting and financial reporting by state and local
governments for postemployment benefits other than pension (OPEB). It also improves information
provided by state and local governmental employers about financial support for OPEB that is provided
by other entities. The implementation of GASB Statement No. 75 affected the District’s
postemployment benefit plan disclosures, as presented in Note 13 to the basic financial statements, and
added required supplementary information which is presented after the notes to the basic financial
statements.

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