The Federal Accounting Standards Advisory Board issued a proposal Thursday to update the guidance for the management's discussion and analysis section of financial reports by federal government agencies.
This proposed update aims to provide a comprehensive set of standards to guide managers on how to present an MD&A that's balanced, concise and understandable about the reporting entity's:
- Organization and mission;
- Financial position and condition;
- Operating performance, opportunities, and risks; and,
- Systems, internal controls, and compliance with applicable laws and regulations.
"This proposal would provide more flexibility for reporting MD&A, reduce preparer burden and redundancy, and enhance transparency," said FASAB chairman George Scott in a statement.
It would take a principles-based approach while merging and updating the content from some of FASAB's existing standards, SFFAC 3 and SFFAS 15.
FASAB is asking for comments by Dec. 7, 2023, along with reasons for their positions from commenters. The
