The Governmental Accounting Standards Board has proposed transferring guidance from the American Institute of CPAs' auditing literature into its own literature for state and local government accountants.
GASB is seeking comments on two new exposure drafts that are intended to make it easier for preparers of state and local government financial statements to identify and apply guidance on related-party transactions, going-concern considerations, subsequent events, and the generally accepted accounting principles hierarchy for state and local governments.
The relevant parts of the AICPA's statements on auditing standards would be moved to the GASB literature without substantive changes, although some editing has been proposed to make the guidance specific to state and local governments. However, the guidance would remain unchanged in practice.
"Until now, preparers of state and local government financial statements have had to look to the auditing literature to find accounting and financial reporting guidance on these issues," said GASB Chairman Robert H. Attmore in a statement. "Our proposals would make it easier for preparers of financial statements to locate and apply this important guidance."
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