In a time of volatile energy prices and economic uncertainty, the Governmental Accounting Standards Board has issued a standard that should allow state and local governments to more easily use derivative financial instruments to hedge against changes in prices and interest rates.

GASB Statement 53, Accounting and Financial Reporting for Derivative Instruments, establishes rules for long-needed consistency in reporting on derivatives. It requires governments to report most derivatives at fair value in financial statements prepared on an accrual basis and using the economic resources measurement focus.

Register or login for access to this item and much more

All Accounting Today content is archived after seven days.

Community members receive:
  • All recent and archived articles
  • Conference offers and updates
  • A full menu of enewsletter options
  • Web seminars, white papers, ebooks

Don't have an account? Register for Free Unlimited Access