Government

The Federal Accounting Standards Advisory Board (FASAB) released an exposure draft, Subsequent Events: Codification of Accounting and Financial Reporting Standards Contained in the AICPA Statements on Auditing Standards. The proposal would incorporate the guidance in the AICPA’s Statements on Auditing Standards (SAS) AU section 560, Subsequent Events, into the authoritative FASAB literature.

Events or transactions that affect the financial statements may occur subsequent to the end of the reporting period but before the financial statements are issued. Some of those transactions and events require adjustments to the financial statements, while others may require disclosure in the notes to the financial statements. The ED addresses circumstances to consider in determining whether the financial statements require adjustment or disclosure.

The comment period ended Dec. 28. The ED is available at fasab.gov/exposure.html.