NEWS RELEASE 01/29/10
GASB Proposes to Enhance the Usefulness of Its Codification for Constituents
***Comments on Proposed Statement Are Due by July 31, 2010***
Norwalk, CT, January 29, 2010—The Governmental Accounting Standards Board (GASB) today issued an Exposure Draft (ED) of a proposed Statement, Codification of Accounting and Financial Reporting Guidance Contained in Pre-November 30, 1989 FASB and AICPA Pronouncements. The proposed Statement is intended to enhance the usefulness of its Codification by incorporating guidance that previously could only be found in certain Financial Accounting Standards Board (FASB) and American Institute of Certified Public Accountants (AICPA) pronouncements. This literature has not been maintained for the state and local government environment. By incorporating and maintaining this guidance in a single source, the GASB will reduce the complexity of locating and using authoritative literature needed to prepare state and local government financial reports.
This proposed Statement would incorporate into the GASB’s authoritative literature the applicable guidance previously presented in the following pronouncements issued before November 30, 1989:
- FASB Statements and Interpretations
- Accounting Principles Board Opinions
- Accounting Research Bulletins of the AICPA’s Committee on Accounting Procedure.
It would improve financial reporting by eliminating the need for financial statement preparers and auditors to determine which FASB and AICPA pronouncement provisions apply to state and local governments, thereby resulting in a more consistent application of relevant guidance in financial statements of state and local governments. It would also contribute to the GASB’s efforts to codify all sources of generally accepted accounting principles for state and local governments so that they can be found within a single source. “This will make it easier for practitioners to identify the applicable authoritative guidance without searching through and interpreting multiple sources of potential guidance,” said GASB Chairman Robert Attmore.
GASB constituents are encouraged to review the ED and provide written comment by July 31, 2010. The ED may be downloaded from the GASB’s website at http://www.gasb.org. Instructions on how to submit comments are contained in the ED.
About the Governmental Accounting Standards Board
The GASB is the independent, not-for-profit organization formed in 1984 that establishes and improves financial accounting and reporting standards for state and local governments. Its seven members are drawn from the Board’s diverse constituency, including preparers and auditors of government financial statements, users of those statements, and members of the academic community. More information about the GASB can be found at its website www.gasb.org.