GASB invites feedback on potential overhaul of GAAP framework

The US Governmental Accounting Standards Board (GASB) is seeking feedback connected a Discussion Memorandum connected however mostly accepted accounting principles (GAAP) for US authorities and section governments should beryllium structured and communicated.

The document, titled the Structure for Communicating Generally Accepted Accounting Principles for State and Local Governments, is intended to stitchery input astatine an aboriginal stage.

It forms portion of the GASB’s pre-agenda probe connected the taxable and does not acceptable retired its preliminary views. However, the papers is intended to pass the board’s information connected whether to initiate a method docket task to determination to a single-authority operation for authorities GAAP.

According to the GASB, the probe is aimed astatine assessing however effectual the existent dual-authority exemplary is and whether a displacement to a single-authority operation should beryllium considered.

It besides looks astatine however specified a exemplary could beryllium enactment into signifier if pursued.

Under the existing system, GAAP are contained successful 2 sources that stock the aforesaid level of authority: Original Pronouncements, including GASB Statements and Implementation Guides, and the Codification.

In responses to different GASB owed process documents, immoderate stakeholders person questioned the dual-authority operation and called for a single, consolidated acceptable of GAAP, drafting comparisons with the FASB Accounting Standards Codification.

The GASB notes that the process of issuing caller standards and revising earlier requirements has made some the usage and upkeep of the dual operation progressively complicated.

An earlier signifier of the pre-agenda probe examined however stakeholders interact with GASB materials and however the dual model is maintained.

On the ground of that earlier work, the existent signifier is considering whether a single-authority attack should beryllium pursued and, if so, what signifier a aboriginal operation mightiness take.

The GASB emphasises that this probe is not intended to effect successful changes to existing accounting and fiscal reporting requirements. Instead, it concentrates connected however GAAP are presented and maintained.

Stakeholders are asked to reappraisal the Discussion Memorandum and supply comments to the GASB by 31 August 2026.

"GASB invites feedback connected imaginable overhaul of GAAP framework" was primitively created and published by The Accountant, a GlobalData owned brand.

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