The Governmental Accounting Standards Board issued a new accounting statement Thursday aimed at incorporating accounting guidance issued by outside standard-setters that is applicable to state and local governments.
Statement No. 62, Codification of Accounting and Financial Reporting Guidance Contained in Pre-November 30, 1989 FASB and AICPA Pronouncements. The statement is intended to enhance the usefulness of GASB’s Codification by incorporating guidance that previously could only be found in certain pronouncements from the Financial Accounting Standards Board and the American Institute of CPAs.
The statement incorporates into GASB‟s authoritative literature the applicable guidance previously presented in the following pronouncements issued before Nov. 30, 1989: FASB Statements and Interpretations; Accounting Principles Board Opinions; and Accounting Research Bulletins of the AICPA’s Committee on Accounting Procedure.
By incorporating and maintaining the guidance in a single source, the statement aims to reduce the complexity of locating and using all the relevant authoritative literature needed to prepare state and local government financial reports.
GASB said the statement would also 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. Finally, it contributes to GASB’s efforts to codify all the sources of generally accepted accounting principles for state and local governments so that they can be found within a single source.
“Statement 62 will make it easier for preparers of state and local government financial statements to find relevant authoritative guidance,” said GASB Chairman Robert H. Attmore in a statement. “While the guidance it includes has largely been taken ‘as is’ from the original FASB and AICPA pronouncements, it has been modified when appropriate to relate specifically to the governmental environment to increase its usefulness to this audience.”
The requirements of Statement 62 are effective for financial statements for periods beginning after Dec. 15, 2011. Earlier application is encouraged. More information on Statement 62 is available at www.gasb.org.
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