HB 327 Summary

• Amends Chapter 108, RSMo to establish accounting and disclosure requirements for nonexchange financial guarantees extended by Missouri state government entities and political subdivisions.

• Requires government entities to assess and publicly disclose qualitative factors indicating whether payment on a guarantee is "more likely than not" (greater than 50% likelihood), including bankruptcy initiation, debt contract breaches, and indicators of financial difficulty.

• Mandates recognition of liabilities and expenses in financial statements when it is more likely than not that a government will make guarantee payments, using the best estimate of discounted present value of expected future outflows.

• Requires public disclosure of detailed information about extended guarantees including descriptions of obligations, legal authority, relationships to issuing entities, guarantee amounts, and tables tracking changes in recognized guarantee liabilities.

• Requires disclosure by governments with guaranteed obligations, including the guarantor's name, guarantee amount, duration, payments made, and repayment requirements; effective for periods beginning after August 28, 2013.