j deburro, j gonzalez, a mccane, s dempsey presentation
TRANSCRIPT
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GASB UPDATESJohn DeBurro Jackie Gonzalez Adam McCane Sara Dempsey
Statement No. 60Accounting and Financial Reporting for Service
Concession Arrangements
Service Concession Arrangements (SCA’s):
A public‐private or public‐public partnership
Transferor (gov’t) grants right to build, operate or otherwise use capital or other public asset.
Transferor receives consideration (typically up‐front and ongoing).
Operator receives portion of fees and charges collected.
GASB 60
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An SCA exists…if all of the following criteria are met:
1. Transferor must convey right and obligation to provide public services through operation of a capital asset in exchange for significant consideration
2. Transferor must be able to determine or have ability to modify the services the operator provides, to whom, and the prices/rates charged.
3. Transferor must have significant residual interest at end of agreement
4. Operator must receive compensation from third parties
GASB 60
SCAs – may include, but not limited to, the following arrangements:
1. Operator designs and builds a facility and obtains right to collect fees from 3rd parties.
2. Operator provides significant consideration in exchange for right to access an existing facility and collect fees from 3rd party (i.e. parking garage)
3. Operator designs and builds a facility for transferor, finances the construction costs, provides the services, collects fees, and conveys facility back to transferor at end of agreement (i.e. toll way)
GASB 60
SCAs – do not include:1. A contract to provide services considered ancillary to
a capital asset (i.e. concessions at a stadium)
2. Outsourced services (i.e. snow removal)
3. An arrangement in which the operator is compensated by the transferor rather than from user fees
4. Privatization – capital asset is permanently transferred to the operator
GASB 60
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SCAs – Why enter them?
Perceived benefits include:
1. Government can leverage existing capital assets to generate additional resources
2. May be used to facilitate construction/financing of new capital assets and transfer risk associated with construction/maintenance to another entity
3. May be able to use SCAs to provide services in a more efficient and cost‐effective manner
GASB 60
Accounting for an SCA:
If an existing facility/asset• Continue to report as a capital asset
If constructed/purchased/significantly improved by operator
a) Report asset at fair value at date of operation
b) Report PV of significant obligations as liabilities ( i.e. obligation for insurance /maintenance)
c) Deferred inflow to balance entry
GASB 60
Accounting for an SCA (continued): Amortize deferred inflow into revenue over life of contract.
Continue to depreciate asset• Unless operator is required to return asset in original condition
If transferor receives up‐front or installment payments:
• Report up‐front or PV of installment payments as assets using discounted PV
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Revenue Sharing Arrangements
Situation: Operator may only keep a portion of collections
Operator:Revenue for total amount of fees collected
Expenses include portion paid to transferor
Transferor:• Revenue for amount received
GASB 60
Disclosures:• General description of arrangement
Objectives for entering into agreement
For constructed assets – status at balance sheet date
• Nature and amount of assets, liabilities, and deferred inflows
• Rights retained and rights granted
• Any guarantees and commitments (i.e. transferor could be responsible for paying debt if operator defaults)
Effective in periods beginning after 12/15/11 (FY13)
GASB 60
Statement No. 61The Financial Reporting Entity Omnibus
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GASB 61
Objective: to improve financial reporting for a governmental entity
Amends GASB Statements No. 14 and No. 34
Modifies the requirements for including component units within the financial statements of governmental entities.
GASB 61
Summary of Changes
What to include as a component unit
• Change in fiscal dependency criterion
When to blend a component unit
• Change to an existing criterion for blending
• Addition of a new criterion for blending
Clarifications• Criteria for ‘Misleading to exclude’
Disclosures
GASB 61
What To Include:
Fiscal Dependency Criterion• Who determines the budget?
• Who establishes rates or charges?
• Who approves the issuance of debt?
Current Guidance• Sufficient to require inclusion
New Guidance• Sufficient only if also ongoing financial benefit or burden is present.
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GASB 61
When To Blend:
Change to an existing criterion• Is the component unit’s governing body substantively the same as that of the primary government?
• Current Guidance– Sufficient to require that the entity be presented as blended
• burden is present.
GASB 61
• When To Blend – (continued)
Change to an existing criterion – (continued)
• New Guidance
– Governing bodies are substantively the same and
» There is ongoing financial benefit or burden, or
» Operational responsibility
• Primary government’s management also manages the component unit
GASB 61
• When To Blend – (continued)
New Criterion• Is the debt of the component unit to be repaid entirely or almost entirely from resources of the primary government?
– New Guidance: If “Yes”…
» Sufficient to require that the entity be presented as blended
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GASB 61
‘Misleading To Exclude’ Criterion– For organizations that should be included because the primary government’s management determines that it would be misleading to exclude them, GASB Statement No. 61 clarifies the manner in which that determination should be made and the types of relationships that generally should be considered in making the determination.
– Consider the nature and significance of potential CU’s relationship with the PG
GASB 61
Note Disclosure:
Governments should disclose rationale for including “each” CU and the manner in which it is included
GASB Statement No. 61 is effective for periods beginning after June 15, 2012 (FY13)
– Early implementation is encouraged
Statement No. 62Codification of Accounting and Financial
Reporting Guidance Contained in Pre‐November 30, 1989 FASB and AICPA Pronouncements
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GASB 62
Objective: to enhance the usefulness of GASB’s Codification by incorporating guidance that previously could only be found in certain pronouncements from the FASB and the AICPA
GASB 62
Incorporates into the GASB’s authoritative literature certain FASB and AICPA pronouncements issued prior to November 30, 1989, which governments have always been required to implement to the extent they do not contradict GASB guidance.
GASB 62
Pronouncements issued on or before November 30, 1989 include:
Financial Accounting Standards Board (FASB) Statements and Interpretations
Accounting Principles Board (APB)Opinions
Accounting Research Bulletins of the American Institute of Certified Public Accountants' (AICPA) Committee on Accounting Procedure
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GASB 62
GASB Statement No. 62 addresses more than 120 FASB and AICPA pronouncements that date back several decades and covers 30 accounting and financial reporting topic areas.
Those topics that are most commonly applied by governments include:
• Accounting changes and error corrections
• Capitalization of interest costs
• Contingencies
GASB 62
Those topics that are commonly applied by governments – (continued )
• Extinguishments of debt
• Imputation of interest costs
• Investments in common stock
• Leases
• Regulated operations
• Special and extraordinary items
• Statement of net assets classifications
GASB 62
How will GASB 62 improve reporting?
Eliminate the need for financial statement preparers and auditors to determine which FASB and AICPA pronouncement provisions apply to state and local governments.
Contribute to efforts to codify all sources of generally accepted accounting principles related to state and local governments in one source.
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GASB 62
GASB Statement No. 62 is effective for periods beginning after December 15, 2011 (FY13)
– Early implementation is encouraged
Statement No. 63
Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of
Resources, and Net Position
GASB 63
• Concepts Statement No. 4, “Elements of Financial Statements” defined deferred outflows of resources and deferred inflows of resources
• Previous GASB Statements (No. 53 – Hedging, No. 60 – Service Concession Arrangements) required the reporting of deferred inflows and outflows in the statement of net assets
• However, no guidance existed for their presentation until GASB Statement No. 63
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GASB 63
2 Issues:
1. How to present the new elements?
2. How to describe the difference between debits and credits?
GASB 63
Deferred outflow : consumption of net assets that is applicable to a future reporting period
– Example: Hedging interest rate swap agreement in which the fair value becomes negative
Deferred outflows should be reported in the statement of financial position in a separate section following assets
GASB 63
Deferred inflow : acquisition of net assets that is applicable to a future reporting period
– Example: Service concession arrangement involving a public toll road wherein the government receives an upfront payment from the operator
Deferred inflows should be reported in the statement of financial position in a separate section following liabilities
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GASB 63 – Financial Reporting
• Amends Statement No. 34 to reflect the residual measure in the statement of financial position as net position, rather than net assets
• As a result, the statement of net assets is renamed the statement of net position
• Encourages use of the net position format (assets + deferred outflows of resources – liabilities – deferred inflows of resources = net position)
• Also, however, permits use of the balance sheet format (assets + deferred outflows of resources = liabilities + deferred inflows of resources + net position)
GASB 63 – Financial Reporting
Net position should be reported in three components (similar to current requirements for net assets):
• Net investment in capital assets
• Restricted (distinguished between major categories of restrictions)
• Unrestricted
Deferred inflows and outflows should be allocated to the restricted components if associated with restricted assets or liabilities
Financial Reporting‐example
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GASB 63 – Financial Reporting
Disclosure requirements: If multiple types of deferred outflows or deferred inflows are aggregated on the face of the financial statements, then governments are required to provide details about the different types of deferrals in the note disclosures
If the amount reported for a component of net position is significantly impacted by deferrals, must include a note explaining the effect of the deferred amounts on the net position balances
GASB 63 – Implementation
Provisions are effective for periods beginning after December 15, 2011 (FY13), with earlier application encouraged
All prior periods presented should be reclassified, if practical, to apply the provisions of this statement
Statement No. 65
Items Previously Reported as Assets and Liabilities
Effective for periods beginning after December 15, 2012 (FY14)
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Purpose
Statement No. 65
Establishes standards that reclassify, as deferredoutflows of resources or deferred inflows ofresources, certain items that were previouslyreported as assets and liabilities and recognizes, asoutflows or inflows of resources, certain items thatwere previously reported as assets and liabilities.
• Terms –The use of the term deferred should be limited to items reported as deferred outflows of resources or deferred inflows of resources.
• Major Funds Calculation –combine assets and deferred outflows and combine liabilities and deferred inflows
• Gain/loss on refunding –reported as deferred outflow/inflow and recognized as a component of interest expense over the life of the old debt or the new debt, whichever is shorter.
Summary of Changes
Summary of Changes
• Debt issuance costs –expensed in current period with the exception of any portion related to prepaid insurance
• Sale–leasebacks –gain/loss on sale of property should be reported as deferred inflow/outflow
• Imposed non‐exchange transactions –report as deferred inflow when received or receivable before‐ the period for which property taxes are levied‐ required or permitted for use
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Summary of Changes
• Government Mandated/Voluntary non‐exchange transactions –
‐ If received prior to eligibility requirements are met, record as asset by provider and liabilities by recipient.
‐ If received prior to time requirements being met but with all other eligibility requirements being met, record as deferred outflow by provider and deferred inflow by recipient.
• Sale of future revenues –
report as a deferred inflow in both the government‐wide and fund financial statements except when recognition as revenue in the period of sale is appropriate as discussed in para. 14 of Statement 48
Statement No. 66
Technical Corrections ‐ an amendment of GASB Statements No. 10 and No.62
Effective for periods beginning after December 15, 2012 (FY14)
Purpose
Statement No. 66
To improve accounting and financial reporting by resolving conflicting guidance caused by the issuance of two recent pronouncements: Statements No. 54 & No. 62
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Summary of Changes
• Amends GASB 10 – allows for use of special revenue fund to report entity’s risk financing activities
• Paragraphs 222 and 227b of GASB 62 include guidance on accounting for operating lease payments that vary from a straight‐line basis. Those provisions were deleted to remove what could be perceived as a potential prohibition against the use of the FV method which is permitted under paragraph 6b of Statement 13
• Loans that are purchased should be recorded at the price paid
• Service fees – should not result in an adjustment to the sales price of mortgage loans
Statement No. 70
Accounting and Financial Reporting for Nonexchange Financial Guarantees
Effective for periods beginning after June 15, 2013 (FY14)
Purpose
Statement No. 70
Requires a government that extends a nonexchange financial guarantee to recognize a liability when qualitative and historical data, if any, indicate that the government will more likely than not be required to make payment on that guarantee
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Qualitative Factors
• Entering into bankruptcy/reorganization
• Breach of debt contract (i.e. rate covenants, coverage ratios, delinquent payments)
• Indicators of significant financial difficulty (i.e. drawing on reserve fund)
Recognition
Economic Resources Measurement Focus –
• Recognize liability and expense
• Discounted PV –best estimate of future outflows
Current Resources Measurement Focus –
• Recognize fund liability and expenditure
• To the extent the liability is expected to be liquidated with expendable available financial resources
Recognition
Governments Issuing Guaranteed Debt –
• If required to repay a guarantor, reclassify portion of previously recognized liability as liability to guarantor
• If/when legally released as obligor to the guarantee, recognize as revenue
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Disclosures
Governments that Extend NonexchangeGuarantee –
• Description of guarantee – legal authority, relationship, length of time, recovery arrangements)
• Total amount of all guarantees extended
• If liability recognized or payments made: a roll‐forward of balances
Disclosures
Governments Issuing Guaranteed Obligations –
• Name of guarantor
• Amount of guarantee
• Length of time
• Amount paid by guarantor during current period and overall
• Requirements to repay the entity
Statement No. 67Financial Reporting for Pension Plans – an amendment of GASB Statement No. 25
Statement No. 68Accounting and Financial Reporting
for Pensions – an amendment of GASB Statement No. 27
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Who is impacted?GASB Statement Direct Impact Indirect Impact
GASB No. 67 State and local government pension plans (defined benefit pension plans and defined contribution pension plans)
State and local governmental entities who provide benefits to employees using state and local government pension plans; users of pension plan and governmental financial statements
GASB No. 68 State and local governmental entities who provide benefits to employees using state and local government pension plans
Users of governmental financial statements
Term Definition
Pensions Retirement income and, if provided through a pension plan, postemployment benefits other than retirement income (death benefits, life insurance, and disability benefits). Pensions do not include postemployment healthcare benefits and termination benefits.
Pension plans Arrangements through which pensions are determined, assets dedicated for pensions are accumulated and managed, and benefits are paid as they come due.
Defined benefit pensionplan
Pension plans that are used to provide defined benefit pensions, for which the income or other benefits that the plan member will receive at or after separation from employment are defined by the benefit terms.
Key Terminology
Key Terminology
Term Definition
Defined contribution pension plan
Pension plans that are used to provide defined contribution pensions, which have terms that provide an individual account for each plan member, define the contributions that the employer is required to make, and provide that the pensions a plan member will receive will depend only on the contributions, earnings on those contributions, and other defined items.
Single‐employer defined benefit pension plan
A defined benefit pension plan that is used to provide pensions to employees of only one employer.
Multiple employer defined benefit pension plan
A defined benefit pension plan that is used to provide pensions to the employees of more than one employer.
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Key Terminology
Term Definition
Agent multiple‐employer defined benefit pension plan
A multiple‐employer defined benefit pension plan in which pension plan assets are pooled for investment purposes but separate accounts are maintained for each individual employer so that each employer’s share of the pooled assets is legally available to pay the benefits of only its employees (ex: Texas Municipal Retirement System).
Cost‐sharing multiple‐employer defined benefit pension plan
A multiple‐employer defined pension plan in which the pension obligations to the employees of more than one employer are pooled and pension plan assets can be used to pay the benefits of the employees of any employer that provides pensions through the pension plan (ex: Teacher Retirement System of Texas).
GASB Statement No. 68
Accounting and Financial Reporting for Pensions – an amendment of
GASB Statement No. 27
Key Provisions
• Replaces GASB Nos. 27 and 50, which previously provided guidance for accounting and financial reporting for pension activity.
• Requires governments that provide defined benefit pensions to recognize, for the first time, their long‐term obligation for the pension benefits as a liability.
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Key Provisions
• Provides for more comprehensive and comparable measurement of the annual costs of pension benefits.
• Enhances accountability and transparency through new and revised footnote disclosures and required supplementary information
Defined Benefit Pension Plans
• Requires governments to report a net pension liability
– Net pension liability is calculated as total pension liability less total assets set aside in a trust and restricted to paying benefits to employees, retirees, and their beneficiaries
• Total pension liability is the present value of projected benefit payments
Defined Benefit Pension Plans
Requires immediate recognition of the following pension expenses:
• Annual service cost and interest on pension liability and
• Effect of changes in benefit terms on the net pension liability.
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Defined Benefit Pension Plans
Other components of pension expense will be recognized over a closed period:
• Changes in economic and demographic assumptions;
• Differences between those assumptions and actual; and
• Effects of differences between expected and actual investment returns will be amortized over a closed 5‐year period.
Cost‐sharing Plans
• Will now record its liability and expense equal to proportionate share of collective net pension liability and expense.
• Key changes to treatment of cost‐sharing plans by government employers:
– Projections of benefit payments
– Discount rate
– Attribution method
Cost‐sharing Plans
Projection of Benefit Payments
• Based on then‐existing benefit terms and incorporate projected salary changes and service credits and projected automatic postemployment benefit changes including automatic COLAs.
• New – will also include ad‐hoc postemployment benefit changes, if considered substantively automatic.
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Cost‐sharing Plans
Discount Rate
• Based on a single rate that reflects:
– Long‐term expected ROR as long as the plan net position is projected under specific conditions to be sufficient to pay pensions of current employees and retirees and plan assets are expected to be invested using a strategy to achieve these results
– Yield or index rate on tax‐exempt 20‐yr, AA‐or‐higher rated muni bonds to the extent that the conditions for use on LT ROR are not met
Cost‐sharing Plans
Attribution Method
• Governments will use a single actuarial cost allocation method (entry age) with each period’s service cost determined as a level percentage of pay
Special Funding Situations
A special funding situation exists if a “nonemployer contributing entity” is legally responsible for making contributions directly to a pension plan on behalf of a government, andone or both of the following are true:
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Special Funding Situations
• The amount the nonemployer contributing entity is required to contribute is not based on events or circumstances unrelated to pensions (such as contributing a percentage of a specific revenue source)
• The nonemployer contributing entity is the only entity legally required to contribute to the plan
Disclosures
• Descriptive information about the types of benefits provided
• How contributions are determined
• Assumptions and methods used to calculate pension liability
• Additional info (single & agent employers) such as composition of employees covered and sources of changes in the components of net pension liability
RSI
Single and agent employers will also present RSI schedules covering the past 10 years regarding:
• Sources of changes in the components of net pension liability
• Ratios that assist in assessing the magnitude of the net pension liability
• Comparisons of actual employer contributions with actuarially determined contribution requirements and related ratios
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Defined Contribution Pensions
• Existing standards are largely carried forward
• Governments recognize pension expenses equal to amount of contributions or credits to employees’ accounts, less forfeited amounts
• Pension liability recognized for difference between amounts recognized as expense and actual contributions made
• Is effective for financial statements for fiscal years beginning after June 15, 2014.
• Any changes to beginning net position resulting from implementation should be treated as an adjustment of prior periods.
GASB Statement No. 67Financial Reporting for Pension Plans – an amendment of GASB Statement No. 25
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GASB No. 67
Addresses accounting and financial reporting for the activities of pension plans that have the following characteristics:
• Contributions and earnings on contributions are irrevocable;
• Plan assets are dedicated to providing pensions to plan members; and
• Plan assets are legally protected from the creditors of employers, nonemployer contributing entities, and the plan administrator.
GASB No. 67
• For defined pension plans:
– Establishes standards of financial reporting for separately issued financial reports
– Specifies the required approach to measuring the pension liability of employers and nonemployercontributing entities for benefits provided through the pension plan
– Details note disclosure requirements for defined contribution pension plans
Financial Statements
• Required to present two financial statements:
– Statement of fiduciary net position
– Statement of changes in fiduciary net position
• Required disclosures:
– Description of plan
– Description of plan investments
– Description of investment policies and how fair value is determined
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Financial Statements
• Required disclosures (cont.):
– Investment concentrations
– Rate of return on plan investments
– Other specific disclosures for single‐employer and cost‐sharing plans
Financial Statements
• Required supplementary information:
– Sources of changes in net pension liability – 10 years
– Components of net pension liability and related ratios – 10 years
GASB No. 67
• Statement is effective for financial statements for fiscal years beginning after June 15, 2013.
• Any changes to beginning fiduciary net position resulting from implementation should be treated as an adjustment of prior periods.
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Statement No. 69
Government Combinations and Disposals of Government Operations
Purpose and Effective Date
To establish accounting and financial reporting standards for government combinations and disposals of government operations.
Effective for fiscal years beginning after December 15, 2013.
Government Combinations:
• Mergers
• Acquisitions
• Transfer of operations
Statement No. 69
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Government Mergers
A government combination of legally separate entities in which no significant consideration is exchanged and either:
• The governments cease to exist as legally separate entities and are combined to form one or more new governments, or
• One or more legally separate governments or nongovernmental entities cease to exist and their operations are provided by one or more continuing governments
Government Acquisition
• A government acquires another entity, or the operations of another entity, in exchange for significant consideration.
Transfer of Operations
A government combination involving the operations (i.e. public safety) of a government or nongovernmental entity, in which no significant consideration is exchanged
• Operations – activities that comprise less than an entire legally separate entity
• Operations may be transferred to another existing entity or to a new entity.
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Mergers
Measure the assets, deferred outflows, liabilities, or deferred inflows as of the merger date at the carrying values as reported in the separate financial statements of the merging entities
Beginning net position of the merged government results from combining the carrying values of the assets, deferred outflows of resources, liabilities, or deferred inflows of resources of the separate entities
Mergers (con’t)
Disposals – treatment depends on whether new entity will use capital asset(s) until disposal occurs
New Governments:
Merger date is the date on which the combination becomes effective – initial reporting date begins on merger date
Mergers (con’t)
Continuing Governments:
Merger date is the beginning of the reporting period in which the combination occurs, regardless of the actual date of the merger.
Measurement and recognition as though the entities had been combined at the beginning of the continuing government’s reporting period
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Acquisitions
Acquisition Date – when acquiring government gains control of assets and becomes obliged for liabilities of acquiree entity unless parties agree to a different date
Recognition – at acquisition date in conformity with authoritative guidance for S&LG’s
Measurement – at acquisition value as of acquisition date
Acquisitions (con’t)
Acquisition Value:
Price paid for similar assets, having similar service capacity or discharging the liabilities assumed (market‐based entry price)
Exceptions – employee benefits (comp abs, pensions, OPEB, termination benes); landfill and pollution remediation costs; investments; and deferred inflows/outflows
Acquisitions (con’t)
Consideration:
Sum of assets remitted or liabilities incurred to the former owners of acquired entity
Guidance for situations in which consideration exceeds/is less than net position acquired
Reporting – net fund balance acquired –special item
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Transfer of Operations
Effective transfer date: date transferee government takes control of assets/becomes obligated for liabilities
Recognition – transferee recognizes carrying value as of effective transfer date
Reporting – transferee – recognize net fund balance received as a special item. Disposing government – recognize gain/loss as special item, if applicable
Footnotes
All combinations:
• Brief description, reason, date of combination
Acquisitions:
• Consideration paid, net position acquired, any contingent consideration arrangements
Disposals:
• Identify operations, description of circumstances, revenues and expenses of disposed operations
Auditing Standards Update
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What’s New
Clarified Auditing Standards
Effective for audits and attestation engagements for periods ending on or after December 15, 2012
Resulted from the Auditing Standards Board’s “Clarity Project”
What’s Changing
1. Format of the auditor’s report (opinion letter)
2. Initial audit engagements
3. Audit engagements of a group of financial statements
Auditor’s Report Changes
1. Management’s responsibilities were clarified and described in more detail
2. There are headings for the different sections
3. “Emphasis of Matter” and “Other Matters” paragraphs replace explanatory paragraphs
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Initial Engagement Changes
1. Auditors are now required to do a risk assessment of the opening balances
2. Auditors are now required to perform audit procedures on opening balances if there is a risk of material mistatement
Group Audits Change
The group engagement team is now required to request the component unit auditor notify them of any subsequent events (we are responsible for reporting component unit subsequent events through the release of the PG financial statements).
Yellow Book Update
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Yellow Book Changes
Attempts to make it principles‐based, rather than “rules based”
Most significant changes are in the area of the auditor’s documentation of independence for nonaudit services
Independence
Auditors are required to document:
1. Specific threats to independence
2. Safeguards applied to eliminate or reduce the threats
3. Management’s ability to effectively oversee nonaudit services to be performed by the auditor, including whether management possesses suitable skills, knowledge, or experience (SKE)
Independence
Common examples of threats:
1. Auditor prepares the financial statements
2. Auditor prepares reconciliations
3. Auditor prepares the government‐wide conversion
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Independence
Prohibited nonaudit services include the audit firm:
1. Assuming management responsibilities
2. Preparing accounting records and financial statements
3. Determining the scope of the internal audit function and resulting work on behalf of management
4. Monitoring procedures performed on behalf of management
5. Making investment decisions
Effect
To document threats and safeguards, auditors may ask for a more formal review and approval process from management, e.g. incorporating nonaudit services in the signed engagement letter
To document the skills, knowledge and experience of the auditee designated to oversee the nonaudit service(s), a resume may be obtained
Questions?
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Disclaimer of Liability
Weaver provides the information in this presentation for general guidance only, and it does not constitute the provision of legal advice, tax advice, accounting services, investment advice or professional consulting of any kind. The information included herein should not be used as a substitute for consultation with professional tax, accounting, legal or other competent advisers. Before making any decision or taking any action, you should consult a professional adviser who has been provided with all pertinent facts relevant to your particular situation. Tax information is not intended to be used and cannot be used by any taxpayer for the purpose of avoiding accuracy‐related penalties that may be imposed on the taxpayer. The information is provided "as is," with no assurance or guarantee of completeness, accuracy or timeliness of the information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability and fitness for a particular purpose.