Government


  GASB issued a statement that incorporates the hierarchy of GAAP for state and local governments into GASB’s authoritative literature. GASB Statement no. 55, The Hierarchy of Generally Accepted Accounting Principles for State and Local Governments, is intended to make it easier for preparers of state and local government financial statements to identify and apply the GAAP hierarchy. The statement also advances GASB’s effort to codify all GAAP for state and local governments so that they derive from a single source.

 

Prior to Statement no. 55, the GAAP hierarchy was contained in Statement on Auditing Standards (SAS) no. 69, The Meaning of Present Fairly in Conformity With Generally Accepted Accounting Principles, rather than in GASB’s authoritative literature. Statement no. 55 incorporates relevant portions of SAS no. 69 into the GASB literature without substantive change. Statement no. 55 is effective immediately.

 

To order a copy of the statement, go to www.gasb.org.

 

 

  GASB also issued an Invitation to Comment (ITC) on Pension Accounting and Financial Reporting to obtain feedback for a re-examination of pension accounting and financial reporting standards. The ITC addresses key issues related to pension accounting and financial reporting including the process on which pension accounting and financial reporting should focus; recognition of liabilities and expenses; measurement of unfunded pension obligations; the use of actuarial methods; and reporting by government employers in cost-sharing multiple-employer pension plans and reporting by pension plans themselves.

 

Comments are requested by July 31. A public hearing on the ITC is scheduled for GASB’s regular meeting on Aug. 26 at 8:30 a.m. The ITC is available at www.gasb.org.

 

SPONSORED REPORT

Gearing up for the new FASB lease accounting standard

Management accountants in the United States face significant challenges as companies prepare for the far-reaching change. This report looks at the standard, common challenges companies are likely to face and first steps to consider.

CHECKLIST

Being responsive to clients

CPAs and their firms have daily pressures and hectic schedules, but being responsive is crucial to client satisfaction. Leaders in the profession offer advice for CPA firms that want to be responsive to clients.

QUIZ

Learn to choose between ‘who’ and ‘whom’

Writers can stumble over who and whom (or whoever and whomever). If you write for business, this quiz can help make your copy above reproach.