GASB Clarifies Which FASB Guidance Applies to the Government

NEWS RELEASE 12/30/10

GASB Helps Practitioners to Identify Guidance Applicable to State and Local Governments

Norwalk, CT, December 30, 2010—The Governmental Accounting Standards Board (GASB) today issued 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 its Codification by incorporating guidance that previously could only be found in certain Financial Accounting Standards Board (FASB) and American Institute of Certified Public Accountants (AICPA) pronouncements.

The Statement incorporates into the GASB’s authoritative literature the applicable guidance previously presented in the following pronouncements issued before November 30, 1989:

1. FASB Statements and Interpretations
2. Accounting Principles Board Opinions
3. Accounting Research Bulletins of the AICPA’s Committee on Accounting Procedure.

By incorporating and maintaining this guidance in a single source, the Statement reduces the complexity of locating and using authoritative literature needed to prepare state and local government financial reports. It improves 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 the GASB’s efforts to codify all 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. “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 December 15, 2011. Earlier application is encouraged. More information on Statement 62 is available at www.gasb.org.

About the Governmental Accounting Standards Board

The GASB is the independent, not-for-profit organization formed in 1984 that establishes and improves financial accounting and reporting standards for state and local governments. Its seven members are drawn from the Board’s diverse constituency, including preparers and auditors of government financial statements, users of those statements, and members of the academic community. More information about the GASB can be found at its website www.gasb.org.