GASB Provides Guidance to Assist Stakeholders with Application of Its Pronouncements
Norwalk, CT, June 2, 2021—The Governmental Accounting Standards Board (GASB) today issued implementation guidance in the form of questions and answers intended to clarify, explain, or elaborate on certain GASB pronouncements.
Implementation Guide No. 2021-1, Implementation Guidance Update—2021, contains new questions and answers that address application of GASB standards on derivative instruments, fiduciary activities, leases, and nonexchange transactions. The guide also includes amendments to previously issued implementation guidance on the financial reporting model, as well as sales and pledges and intra-entity transfers.
The GASB periodically issues new and updated guidance to assist state and local governments in applying generally accepted accounting principles (GAAP) to specific facts and circumstances that they encounter. The GASB develops the guidance based on:
- Application issues raised during due process on GASB Statements and other pronouncements,
- Application issues identified during the first stage of the GASB’s post-implementation reviews of the fiduciary activities and leases standards,
- Questions it receives throughout the year, primarily from governments and auditors, and
- Topics identified by members of the Governmental Accounting Standards Advisory Council and other stakeholders.