The Governmental Accounting Standards Board released guidance Monday to improve debt-related disclosures in notes to financial statements, including how they address direct borrowings and direct placements.
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Statement 88 also requires state and local governments to disclose additional debt-related information for all types of debt, including the amounts of unused lines of credit, along with the assets that have been pledged as collateral for debt.
State and local governments also will now need to disclose the terms specified in debt agreements related to significant events of default with finance-related consequences, termination events with finance-related consequences, as well as subjective acceleration clauses.
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