In early December, the Governmental Accounting Standards Board (GASB) released an Invitation to Comment on Financial Reporting Model Improvements – Governmental Funds. GASB hopes to obtain stakeholder feedback on the potential improvements to the existing financial reporting model for governmental funds. The current reporting model presents information using the current financial resources measurement focus and modified accrual basis of accounting, which has certain conceptual shortcomings and questioned effectiveness.
The potential improvements include:
- Recognition approaches (measurement focus and basis of accounting);
- Format of the governmental funds statement of resource flows;
- Specific terminology;
- Reconciliation to the government-wide statements; and
- For certain recognition approaches, a statement of cash flows.
This is a key opportunity for stakeholders to influence the direction of the GASB deliberations on the fundamental issues being considered.
Deadline for written notice of intent to participate in the public hearings and user forums: March 31, 2017.
Deadline for submitting written comments: March 31, 2017.
The Public Hearings and forums schedules can be found in the Invitation to Comment document linked below.