FASAB Issues Fiscal Sustainability Disclosure Requirements


The Federal Accounting Standards Advisory Board ( FASAB) issued a standard that furthers one of the standard setter’s federal financial reporting objectives—the stewardship objective—by enabling readers to determine whether future budgetary resources will sufficiently sustain public services and meet obligations as they come due. Statement of Federal Financial Accounting Standards (SFFAS) 36, Reporting Comprehensive Long-Term Fiscal Projections for the U.S. Government , will be fully implemented by fiscal year 2013. Starting in 2010 all information may be presented as required supplementary disclosures.

 

SFFAS 36 will standardize reporting of projected trends in the federal budget deficit or surplus and the federal debt and how these amounts relate to the national economy and will require the projections to be more reader-friendly. If an excess of projected spending over projected receipts is indicated by the projections, the required reporting would explain and illustrate the likely impact of delaying action, for example, the progressive increase in the change that would be needed by (1) reducing spending, or (2) increasing receipts.

 

SPONSORED QUIZ

How well do you know small business?

There are over 30 million small businesses in the U.S., and many of them are optimistic in their outlook. Are you familiar with the obstacles and opportunities they are facing? Test your small business acumen with this quiz sponsored by Chase Ink®.

SPONSORED REPORT

Tax reform complicates year-end tax planning

Get your clients ready for tax season with these year-end tax planning strategies, which address how to make the most of recent tax law changes, such as the new deduction for qualified business income, the higher standard deduction, and the cap on the deductibility of state and local taxes.