Thoughts on the GASB Proposed Updates?
Late last year, the Governmental Accounting Standards Board (GASB) released a number of proposals aimed at improving key components of the government financial reporting model and addressing new guidance for developing recognition concepts. The following is a quick summary of the items included in the GASB document.
Changes to Financial Reporting Model – The GASB release included updates to government financial reporting regulations aimed at improving effectiveness and accuracy. The proposed items include changes to the recognition of short- and long-term transactions and resource flows, clarification about operating and nonoperating revenues and expenses, a new requirement that all budgetary comparison information be included in a supplementary section, and more. For more details, see the GASB press release.
New Recognition Concepts – GASB chose to update methods for recognition concepts on both state and local government financial statements. They established a hierarchy for recognition of elements being considered for inclusion on financial statements. GASB also proposed a new recognition framework for both the short-term financial resources measurement focus and the economic resources measurement focus. For more details, see the GASB press release.
Call for Comments – GASB recently accepted written comments on the newly released proposals. In the first half of March they will hold a number of public hearings and user forums in Illinois, Georgia, and New York.
For more details, read the GASB press release in full. Be sure to contact your Lewis, Hooper & Dick, LLC advisor for additional guidance.