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.
